IPO of Nokia Siemens Best Outcome for Nokia (NOK) - Credit Suisse

Nokia Siemens Networks (NSN) has been a burden on Nokia (NYSE: NOK) and Siemens AG (NYSE: SI), with both companies looking to unload positions recently. Instead of a sale, one analyst firm thinks taking NSN public might be the best option.

Credit Suisse thinks an IPO of NSN would improve Nokia's liquidity, generating the most value for the company in the process. The firm notes that operating margins of 7 percent to 8 percent are "sustainable" over a long-term time frame.

An IPO would help Nokia to attain a net cash position of €2.8 billion by 2015, amid continual cash burn.

Credit Suisse has Nokia at Underperform, saying its unlikely to boost its smartphone market share above 3 percent and its Devices & Services segment will need further restructuring.

Firms also seeing an IPO of NSN include Societe Generale and Morgan Stanley, though Morgan Stanley thinks a sale might also be feasible.

Nokia is down 2.5 percent Tuesday in early trading.

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 $3.58 yesterday.

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