From Standard & Poor's Equity ResearchBaird downgraded Lucent Technologies (LU

) to neutral from outperform, noting the company's quarterly results preannouncement.

Lucent said recently that it expects third quarter revenue of about $2.04 billion.

Analyst Kenneth Muth says the preannounced third quarter results fell short of his 4 cents earnings per share (EPS) and $2.25 billion revenue estimate. He thinks Lucent shares will remain near their current levels, or trend lower, due to Lucent's weak financial performance and pending merger. He lowers fiscal year 2006 (ending September) revenue and earnings per share (EPS) estimates of $8.93 billion and 17 cents to $8.49 billion and 14 cents, respectively. He cut his fiscal year 2007 revenue and EPS estimates of $9.28 billion and 18 cents to $8.83 billion and 15 cents, respectively. He lowers his $4 stock price target to $3.