UPDATE: Baird Lowers Nokia (NOK) to Underperform; Says Losing Market Share at Both Ends of the Spectrum

June 14, 2012 8:54 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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(Updated - June 14, 2012 1:34 PM EDT)

Earlier, Robert W. Baird sliced its rating on Nokia (NYSE: NOK) from Neutral to Underperform, halving its price target from $4 down to $2 in the process. The move came following Nokia's announcement of a new streamlining process, which would involve the cutting of ten-thousand jobs as well as asset divestitures.

Analyst William Power said that although recent market share losses were concerning, the latest price descent "threatens its very survival." Though he sees solid shipments in Nokia's Windows Phone-equipped Lumia device in the quarter, sales won't enough to offset losses elsewhere in the company.

Power also noted Nokia continues to lose share at both ends of the market, at the high-end and low-end with both smartphones and feature phones. In addition, he noted Nokia's loss of grasp in the burgeoning emerging market scene, as lower-cost, locally-made OEMs enter the market.

Nokia is trading 14 percent lower Thursday afternoon.

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

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