Credit Suisse Downgrades Nokia (NOK) to Underperform; Things Aren't Getting Better, a Break-Up Needed

October 1, 2012 8:59 AM EDT
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Price: $4.27 -0.23%

Rating Summary:
    23 Buy, 15 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 4 | New: 31
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Credit Suisse downgraded Nokia (NYSE: NOK) from Neutral to Underperform and cut its price target to EUR1.60 price target.

The firm said operating losses in its Device & Services unit will unlikely see significant improvement next year and cash burn will likely increase. They said the transition to Windows 8 will likely be slow and challenging.

In the longer-term, a break-up of the company should be considered, the firm said. Apple may be interested in Nokia's IP. Ericsson, Huawai, ZTE may be interested in parts of Nokia Seimens Networks. They said no company would likely be interested in the entire company with its 114,000 employees.

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 $2.58 yesterday.

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