Nokia (NOK) Buying Alcatel (ALU) Wireless Assets Could Boost Value - Analyst

September 13, 2013 6:50 AM EDT
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Price: $4.76 +0.42%

Rating Summary:
    17 Buy, 25 Hold, 6 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Nokia (NYSE: NOK) might see a jump in market cap should it move to acquire Alcatel-Lucent's (NYSE: ALU) wireless division.

Liberum commented today that the purchase would move Nokia Siemens Networks value to 0.8 times sales, pushing the unit to an overall valuation of €6.8 billion (just over $9 billion). Nokia's current market cap is at $23.6 billion.

Nokia could also garner another €4 billion in cash from the sale of its HERE unit, for a sum-of-the-parts value of €7.4 billion for the unit.

Liberum keeps Nokia at Buy, but raises its price target from €4.5 up to €5.7 per share.

For an analyst ratings summary and ratings history on Nokia click here. For more ratings news on Nokia click here.

Shares of Nokia closed at $6.36 on Thursday, with a 52 week range of $2.52 to $6.47.

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