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Nomura Securities on Nokia (NOK): Launching All-Touch Could Cause Short-Term Gains, But Long-Term Pain

June 7, 2012 8:11 AM EDT Send to a Friend
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Price: $8.20 --0%

Rating Summary:
    14 Buy, 24 Hold, 7 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 1 | New: 6
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Nomura Securities maintains a 'Neutral' on Nokia (NYSE: NOK) price target of EUR3.20.

Analyst, Stuart Jeffrey, said, "It appears to us that Nokia has traded long-term gains for a near-term shoring up of the income statement and cash flow. The new operating system (S40 Asha) adds all an all-touch user interface, addressing a short-term pain point. However, a number of needed enhancements are missing. While these enhancements seem likely to come through over time, this incremental improvement process may put additional stresses on application developers and sustain a lack of visibility into Nokia’s low end roadmap. The net result is that the P&L benefits may come through in H2 – helping near-term concerns – but that sales lose momentum through 2013 in a repeat of the recent dual-SIM driven boom and pull back in late 2011 into early 2012."

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 $2.88 yesterday.




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