US Bank downgraded Lucent Technologies (LU

) to underperform from market perform.

Analyst Edward Jackson says the downgrade results from lingering demand softness and continued uncertainty in service provider capital expenditures, as well as the very real risk of bankruptcy. He sees no indications of improved demand. He recommends investors avoid virtually all service provider-focused equipment companies due to continued deterioration in fundamentals. He keeps his $0.98 fiscal 2002 (Sept.) loss estimate, and the $0.77 fiscal 2003 loss estimate. The target is still suspended.