Deutsche Bank impressed by Alcatel-Lucent's prospects

Our sister publication FierceWirelessEurope reports that Deutsche Bank thinks Alcatel-Lucent's (NYSE:ALU) prospects have improved, thanks in part to the appointment of new CEO Michel Combes, who is known for slashing costs. The new CEO is expected to accelerate the company's extensive cost-cutting plan, which includes 5,500 job cuts. Deutsche Bank upped its rating on Alcatel-Lucent from hold to buy and cited four other factors that should help the struggling infrastructure vendor regain its footing, according to Street Insider. Alcatel-Lucent's prospects will be boosted by stabilized and improved network revenues (thanks, in part, to growing operator capex in the United States and China); a shift to high-margin upgrades to boost data capacity in the U.S. market in 2014; further expected cost savings of $775 million; and recent refinancing that enabled the company's management to restructure and refocus. For more, see this FierceWirelessEurope article.