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Nokia (NOK) Adds No Value to Microsoft (MSFT), Thinks Deutsche Bank

September 3, 2013 9:19 AM EDT Send to a Friend
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On Tuesday investors learned that Microsoft (NASDAQ: MSFT) announced it is acquiring Nokia's (NYSE: NOK) devices and services business, licensing Nokia's patents, and licensing Nokia's mapping services for $7.1 billion. While some view the news positively, others don't see tremendous value for Microsoft.

Commenting on developments, analyst Nandan Amladi of Deutsche Bank said, "Bulls will see this as a play consistent with the 'devices and services' strategy but the reality is that there's no major change relative to competition with Apple and Samsung. Bulls will also see value in Nokia's global manufacturing, supply chain and distribution network, through which MSFT could pump new products like the Surface and potentially Xbox (which already has a healthy network of its own)."

"However, we do not see this deal offering anything incremental to MSFT that it did not have as part of its partnership with NOK," concluded the analyst.

Deutsche Bank has a Hold rating Microsoft with a price target of $34.00

For an analyst ratings summary and ratings history on Microsoft (NASDAQ: MSFT) click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $33.40 yesterday.




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