France's Alcatel-Lucent was downgraded on Wednesday to neutral from buy at Goldman Sachs, which cited its strong recovery following the company's disappointing performance in the fourth quarter. The broker said the firm's 2010 guidance leaves only sector-average upside of 10% to its price target. "We continue to view the company's long-term ability to generate cash as uncertain given aggressive competition in legacy products from Chinese vendors, and Alcatel-Lucent's low market shares in next-generation IP-based solutions," Goldman said.

source:marketwatch