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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Pat Hughes who wrote (9496)	9/11/1999 9:15:00 AM
From: puborectalis	Read Replies (1) \| Respond to of 21876

September 10, 1999 5:31 PM Better Times Ahead for Lucent, Nortel By Monica Rivituso COMMUNICATIONS NETWORKING companies Lucent Technologies (LU) and Nortel Networks (NT) sizzled today after a couple of analysts made positive comments about each. Lucent, the No. 1 maker of telephone equipment, reportedly got its pop from Schroder & Co.'s Stephen Koffler, who initiated coverage with an Outperform rating and a 12-month price target of $75. Meanwhile, Nortel shares jumped more than 4% a day after Sutro & Co. analyst Patrick Houghton reiterated his Buy rating. "Nortel is a stock that I've been pushing since last year," he says. Houghton likes the looks of Nortel's optical networking business, especially given the company's recent $133.1 million contract from Argentine data transmission company, Impsat. "This contract adds to an impressive year-to-date list of six Nortel awards in the Caribbean and Latin America," said Houghton in a note. He continues to believe that the company is the worldwide market-share leader in optical networking, especially in high-performance, broadband networks. "[Nortel] is very well positioned in the optical networking space," he says. While Lucent and Nortel often vie for No. 1 status, and both are strong companies, Houghton prefers Nortel, as it trades at a 40% to 50% discount to Lucent's multiple. He has a $55 12-month price target on Nortel shares.