Analyst Update: Alcatel Lucent, AT&T, GlaxoSmithKline

Analysts adjusted their ratings on ALU, T, and GSK

Oct 23, 2014 at 11:40 AM

Analysts are weighing in today on networking firm Alcatel Lucent SA (ADR) (NYSE:ALU), telecom issue AT&T Inc. (NYSE:T), and pharmaceutical power GlaxoSmithKline plc (ADR) (NYSE:GSK). Here's a quick look at today's brokerage notes on ALU, T, and GSK.

ALU is up 4.8% to trade at $2.61, after being upgraded to "hold" from "underperform" at Jefferies. Nevertheless, the shares remain nearly 41% lower on a year-to-date basis, and are facing overhead resistance from their descending 20-day moving average, located at $2.69. Additionally, the equity recently hit a fresh 12-month low. In spite of these unimpressive long-term technicals, Alcatel Lucent SA's (ADR) 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) checks in at 27.53. Relative to the past year's worth of readings, the current ratio ranks in the 70th annual percentile, signaling an unusually strong preference for long ALU calls over puts. On the fundamental front, the company will report third-quarter earnings before the open next Thursday, Oct. 30.

T has shed 2.7% to churn near $33.56, after a disappointing third-quarter earnings report prompted no fewer than five brokerage firms to lower their price targets on the security. Similarly, Hilliard Lyons downgraded the stock to "neutral" from "long-term buy." On the other side of the fence, Cowen raised its price target on AT&T Inc. to $39 from $38, to go along with its "market perform" opinion. On the charts, the equity has lost 4.5% in 2014. Elsewhere, options traders have been betting more bearishly than usual on T, per its 10-day ISE/CBOE/PHLX put/call volume ratio of 1.35, which sits higher than more than three-quarters of all other readings from the last year.

GSK has tacked on 2.5% to trade at $45.54, following news that the firm may float its HIV unit, Viiv Healthcare. Also helping the shares was an upgrade to "overweight" from "equal weight," and price-target hike to 1,600 pounds from 1,485 pounds, at Barclays -- although Bryan Garnier, Deutsche Bank, and Leerink all slashed their respective price targets. Overall, it's not been a good year for GlaxoSmithKline plc (ADR), which is down nearly 15% in 2014. Not surprisingly, Wall Street is skeptically arrayed toward the stock, with seven "hold" and "strong sell" ratings outweighing just one "strong buy."

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