Already down this quarter, Nortel got another kick in the gut from fellow Canadian company RBC Capital. "Public equity investors have mostly given up on the company," said RBC Capital analyst Mark Sue.
RBC has downgraded Nortel's stock from "sector perform" to "under-perform" and has cut the price target for Nortel shares in half, to $2. A combination of a deteriorating balance sheet, turbulence in the credit markets, the potential ("potential"?) for a slowing economy overseas and additional scrutiny on carrier spending is not making it easy for Nortel to carry out its turnaround plans.
For more:
- National Post.com noting [1] Nortel's not popular among investors these days
Related stories
Nortel sounds warning bell, may sell unit - FierceTelecom [2]
Nortel takes it on the chin in Q2 - FierceTelecom [3]
Links:
[1] http://network.nationalpost.com/np/blogs/tradingdesk/archive/2008/10/06/nortel-downgraded-as-investors-have-mostly-given-up.aspx
[2] http://www.fiercetelecom.com/story/nortel-sounds-warning-bell-may-sell-unit/2008-09-17
[3] http://www.fiercetelecom.com/story/nortel-takes-it-chin-q2/2008-08-01