Citigroup has upgraded BSA to "hold" from "sell" as it has more confidence in the stability of the telecommunication group's earnings going into fiscal 2009 following BSA's two profit warnings in the second half of 2008.

While the stock looked cheap on a fiscal 2009 price-earnings ratio of 5.3 times, the broker said BSA needed to show tangible solid results before it became more positive on the stock, given the profit downgrades.