Bernstein Research analyst Pierre Ferragu has launched coverage of the European telecoms equipment sector. He is bullish on the networking sector, but negative on devices. Ergo, he launched Ericsson with an outperform rating, Alcatel-Lucent at market perform and starts Nokia at underperform. Ferragu sees network equipment sales growing seven per cent a year through 2012, up from four per cent on average from 2002 to 2007. "As a result of the explosion of data traffic," which he sees growing at 75 per cent a year, and continued growth in voice traffic of about 20 per cent a year. "We also expect profitability to improve as demand picks up and the competitive landscape stabilizes." Article