UPDATE: New Street Research Upgrades Nokia (NOK) to Buy; Sees 54% Upside

January 7, 2020 6:02 AM EST
Get Alerts NOK Hot Sheet
Price: $6.08 +0.50%

Rating Summary:
    21 Buy, 15 Hold, 7 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 8
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(Updated - January 7, 2020 6:46 AM EST)

New Street Research analyst Pierre Ferragu upgraded Nokia (NYSE: NOK) from Neutral to Buy with a EUR5.30 price target (54% upside).

The analyst highlighted:

  • Nokia has missed the 5G turn: radio portfolio issues, margin pressure, market share losses, stock down 50% vs. Ericsson
  • Performance of the last 4 years has been dreadful: ~€2.5bn net cash burnt on the Alcatel-Lucent integration and failed 5G transition
  • “Safe” FCF of €2bn p.a. provides a good margin of safety
  • Deep value opportunity? The stock implies negative value for Wireless. Turned around, it could be worth €16bn; that is ~100% upside
  • Multiple ingredients for a successful turn around: Issues acknowledged, 5G will drive growth in 2021 and beyond, operators are supportive
  • Change in management would be positive catalyst but maybe not a necessity

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 $3.93 yesterday.

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