Barclays Sees Difficult Q3 for Nokia (NOK); Lowers FY12/13 Estimates
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Price: $10.76 +1.89%
Rating Summary:
24 Buy, 13 Hold, 6 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
24 Buy, 13 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Equalweight' on Nokia (NYSE: NOK) price target of $3.00.
Analyst, Jeff Kvaal, said, "Nokia is likely experiencing a difficult 3Q, ahead of a possible Windows Phone (Nasdaq: MSFT) recovery in 4Q. Drivers of a solid 2Q should fade in 3Q and may cause shares to relinquish recent gains (+50% vs. SP500: +4% since 2Q results). New WP8 devices to be announced in Sept.; we expect investors to remain wary ahead of sales data."
Kvaal notes that the full-touch Asha could positively surprise, but with the cash burn rate set to accelerate in the 2H of 2012, the next phase of recovery is unlikely by year-end. Therefore, he lowers FY12 EPS estimate from (EUR0.24) to (EUR0.33) and FY13 from EUR0.05 to (EUR0.06). In terms of U.S. currency, FY12 lowered from -$0.32 to -$0.43 and FY13 from $0.06 to -$0.08.
In conclusion, the Barclays analyst, said, "We assume Lumia volumes reach 10m/Q by YE13, evidence of which is unlikely before WP8 sell through data emerges in late 4Q12. Until then, we expect shares to trade on near term dynamics."
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 $2.64 yesterday.
Analyst, Jeff Kvaal, said, "Nokia is likely experiencing a difficult 3Q, ahead of a possible Windows Phone (Nasdaq: MSFT) recovery in 4Q. Drivers of a solid 2Q should fade in 3Q and may cause shares to relinquish recent gains (+50% vs. SP500: +4% since 2Q results). New WP8 devices to be announced in Sept.; we expect investors to remain wary ahead of sales data."
Kvaal notes that the full-touch Asha could positively surprise, but with the cash burn rate set to accelerate in the 2H of 2012, the next phase of recovery is unlikely by year-end. Therefore, he lowers FY12 EPS estimate from (EUR0.24) to (EUR0.33) and FY13 from EUR0.05 to (EUR0.06). In terms of U.S. currency, FY12 lowered from -$0.32 to -$0.43 and FY13 from $0.06 to -$0.08.
In conclusion, the Barclays analyst, said, "We assume Lumia volumes reach 10m/Q by YE13, evidence of which is unlikely before WP8 sell through data emerges in late 4Q12. Until then, we expect shares to trade on near term dynamics."
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 $2.64 yesterday.
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