Wait for June Quarter for Meaningful Read on Nokia (NOK), Oppenheimer Says
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Price: $3.65 +1.39%
Rating Summary:
10 Buy, 14 Hold, 15 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
10 Buy, 14 Hold, 15 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade NOK Now!
Oppenheimer recently met with Nokia (NYSE: NOK) management, commenting on key takeaways today.
Analyst Ittai Kidron noted that Nokia needs a stronger presence in mid- and high-end smartphones with its portfolio expected to expand in 2013. Fiscal second-quarter 2013 will be the first true read as it will be the first quarter when momentum will be able to be judged. The first-quarter 2013 will be another Microsoft (Nasdaq: MSFT) Windows Phone channel-fill period with the ramp-up of the 620.
Nokia's Asha line will be faced with near-term risks tied to a wave of well-featured, low-end Google (Nasdaq: GOOG) Android-based smartphones hitting in key markets. ASPs and margins could come under pressure as a result.
Kidron and his team see Nokia with a long-term margin advantage over peers given IPR. Near-term, smartphones could see a life in margins, bu Mobile Devices are at risk given pressures surrounding its Asha line. The Symbian ramp-down/620 ramp up are positive for margins.
Kidron and his team remain on the sidelines as Nokia's story plays out. He thinks the March quarter won't provide a true read, while the June quarter will flush out Asha positioning and WP8 shipments will better reflect demand.
Oppenheimer rates Nokia at Perform, no price target. Shares are down over 1 percent Thursday.
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 $4.12 yesterday, with a 52 week range of $1.63-$5.87.
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Analyst Ittai Kidron noted that Nokia needs a stronger presence in mid- and high-end smartphones with its portfolio expected to expand in 2013. Fiscal second-quarter 2013 will be the first true read as it will be the first quarter when momentum will be able to be judged. The first-quarter 2013 will be another Microsoft (Nasdaq: MSFT) Windows Phone channel-fill period with the ramp-up of the 620.
Nokia's Asha line will be faced with near-term risks tied to a wave of well-featured, low-end Google (Nasdaq: GOOG) Android-based smartphones hitting in key markets. ASPs and margins could come under pressure as a result.
Kidron and his team see Nokia with a long-term margin advantage over peers given IPR. Near-term, smartphones could see a life in margins, bu Mobile Devices are at risk given pressures surrounding its Asha line. The Symbian ramp-down/620 ramp up are positive for margins.
Kidron and his team remain on the sidelines as Nokia's story plays out. He thinks the March quarter won't provide a true read, while the June quarter will flush out Asha positioning and WP8 shipments will better reflect demand.
Oppenheimer rates Nokia at Perform, no price target. Shares are down over 1 percent Thursday.
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 $4.12 yesterday, with a 52 week range of $1.63-$5.87.
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