Wells Fargo Reiterates a Hold Rating on Nokia Corp

By Jason Carr

In a report released today, Maynard Um from Wells Fargo reiterated a Hold rating on Nokia Corp (NYSE: NOK). The company’s shares opened today at $4.48, close to its 52-week low of $4.30.

Um observed:

“We forecast NOK’s Network sales to decline 10.8% in FY16 and 3.5% in FY17 (Street: -2.1%). While there could be tailwinds that can drive the Networks and that are not in our model (new spectrum in China and India, wholesale projects in Latin America, public safety in North America), we believe visibility is low and think the likelihood of market pressures subsiding near-term is low. However, we believe NOK will continue to manage through the transition by focusing on margin and cost controls. NOK is to host its Capital Markets Day in Barcelona next Tuesday, November 15 th . We expect NOK to highlight trends similar to ERIC’s view in its Networks business as well as focus on its growth opportunities in adjacent markets, though think NOK’s investments here will take time to grow to be meaningful enough to offset Networks pressures. We maintain our Market Perform rating as we expect 2017 to be another year of transition for the company given continued end-market pressures and re-investments before seeing bulk of its restructuring benefits in 2018.”

According to TipRanks.com, Um is a 5-star analyst with an average return of 10.3% and a 61.1% success rate. Um covers the Technology sector, focusing on stocks such as Hewlett Packard Enterprise, Motorola Solutions, and Pure Storage Inc.

Currently, the analyst consensus on Nokia Corp is Moderate Buy and the average price target is $7.50, representing a 67.4% upside.

In a report issued on October 28, BNP Paribas also downgraded the stock to Hold.

Nokia Corp’s market cap is currently $25.69B and has a P/E ratio of 17.64. The company has a book value ratio of 1.2292.

Nokia Oyj provides network infrastructure, technology and software services. It operates through the following segments: Mobile Broadband, Global Services, and Nokia Technologies. The Mobile Broadband segment engages in the provision of flexible network solutions for mobile voice and data services through its Radio and Core business lines. The Global Services segment provides mobile operators with services to create and maintain effective networks. The Nokia Technologies segment focuses on advanced technology development and licensing. The company was founded in 1865 and is headquartered in Espoo, Finland.