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Nortel: “We’re Giving Up,” Says Jefferies; Cuts Rating

August 4, 2008
by Eric Savitz
Blogger and Columnist, Barron's, Tech Trader Daily

Eric Savitz

Nortel Networks (NT) shares are trading lower today after Jefferies analyst George Notter cut his rating on the stock to Hold from Buy.

In a research report entitled “We’re Giving Up,” Notter writes that he is “increasingly concerned about the company’s ability to hit expectations and drive margin expansion in the face of an eroding CDMA revenue stream.”

Notter’s call follows the company’s Q2 results on Friday, which included some cautionary comments on its outlook for the rest of the year.

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