Cowen and Company raises its price target on Nokia (NYSE: NOK) from $7.50 up to $8 and affirms its Market Perform rating.

Analyst Timothy Arcuri noted Nokia's Q1 report of €2.66 billion in revs and EPS of €.04 was mixed with his estimates. Networks non-IFRS operating margin of 9.3% easily topped Street and 5.0% midpoint guidance due to better overall mix of software sales (largely in Japan), higher Mobile Broadband sales and efficiency improvements in Global Services. HERE and Technologies revenue was largely inline. Technologies and HTC signed a patent and technology collaboration agreement during the quarter, under which HTC is now making payments to Nokia, the analyst noted.

So, what now? Arcuri comments, With the D&S sale finally complete and a capital optimization program pending Nokia's focus should shift to long-term strategic growth. We see Networks as stable from a profitability standpoint but unlikely to meaningfully drive the top line. However, the other businesses are more promising, with HERE untethered from D&S (though we believe a period of investment is clearly warranted) and Technologies moving from defense to offense (though this monetization strategy can be less predictable and lumpier).

Arcuri moves FY14 non-IFRS EPS outlook from $.28 up to $.33 and FY15 from $.35 up to $.42.

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Shares of Nokia closed at $7.43 yesterday.