Nokia (NOK) Scores Deal on NSM But Stock Still Dog, Thinks Goldman

Goldman Sachs today maintained a Sell rating on Nokia (NYSE: NOK). Comments follow news Nokia plans to buyout Siemens 50% stake in Nokia Siemens Networks (NSM). Analyst Simon F. Schafer views the move as a mild positive for the stock, but his overall view remains negative.

"Nokia's announced purchase price values the business at €3.4 bn, which is significantly below the €6 bn we assumed in our analysis. We therefore expect the transaction to be EPS accretive given the consequent elimination of minority interest on Nokia's P&L. All else being equal, our preliminary analysis would suggest 2014E EPS of €0.20 vs. our current €0.13 forecast, putting Nokia's shares on 14x 2014E earnings. That said, we believe focus remains on the implied value of Nokia's residual businesses, which we do not consider attractive," said Schafer

For an analyst ratings summary and ratings history on Nokia (NYSE: NOK) click here. For more ratings news on Nokia click here.

Shares of Nokia closed at $3.74 yesterday.

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