How Will This Upgrade Affect Alcatel-Lucent (ALU) Stock Today?

NEW YORK (TheStreet) -- Alcatel-Lucent (ALU) shares were upgraded to "neutral" from "underweight" by analysts at HSBC (HSBC) while setting a price target of $4.20 on the shares.

The price target represents a 6.5% increase from the company's closing price yesterday.

Alcatel-Lucent shares are down -0.25% in pre-market trading on Tuesday.

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TheStreet Ratings team rates ALCATEL-LUCENT as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALCATEL-LUCENT (ALU) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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