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UPDATE: Societe Generale Cuts Nokia (NOK) to Sell, Cites Worsening Cash Flow

May 14, 2012 6:27 AM EDT Send to a Friend
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Price: $8.18 -0.12%

Rating Summary:
    13 Buy, 25 Hold, 7 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 27 | New: 8
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(Updated - May 14, 2012 11:33 AM EDT)

Nokia (NYSE: NOK) is indicated lower Monday morning as Societe Generale downgraded the stock from Hold to Sell, trimming its price target from €3.00 down to €1.80.

UPDATE:

The SocGen analyst said Nokia's cash flow will worsen before it gets better, with the further "substantial" drop in sales being enough "burn through most of Nokia’s existing cash pile and even bring into question Nokia’s very survival.

Though Nokia has hopes with Microsoft's (Nasdaq: MSFT) Windows Phone platform, SocGen sees the Espoo, Finland-based mobile device maker writing off about €2 billion from its devices and services business over the next two years.

With the new price target of €1.80, Nokia's average target by 35 analysts fell to €3.11, down 35 percent in 2012 alone. Shares are over 5 percent lower Monday.

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 $3.20 yesterday.




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