Nokia Rating Increased to Buy at Bank of America Corp. (NOK)
Nokia (NYSE:NOK) was upgraded by investment analysts at Bank of America Corp. from a “neutral” rating to a “buy” rating in a note issued to investors on Tuesday, AnalystRatingsNetwork.com reports. The firm currently has a $7.07 price objective on the stock, up from their previous price objective of $6.19. Bank of America Corp.’s price objective would indicate a potential upside of 13.30% from the stock’s previous close.
The analysts wrote, “We upgrade Nokia to Buy and increase our revenue and EBIT forecasts for 2014/15 by 5/9% and 32/28%, reflecting a more bullish view on the top line for NSN and Advanced Technologies. The risk profile of new Nokia is very different to the handset-focussed Nokia of old, and we see limited potential downside in our bear case to €4, whilst in our bull case we see c60% potential upside to €6.68. We estimate that new Nokia is capable of >€0.35 in earnings power. Our €5.33 [US$7.07] PO is based on an 11x earnings multiple (15% discount to Ericsson’s 5yr average, 20% discount to current), to which we add back the excess net cash that we believe could be returned to shareholders (€1.53/share). Our new PO would value Nokia on 0.88x EV/Sales (2015), which we believe is conservative given the 11.8% operating margins we forecast for 2015, vs the current 0.58x EV/sales.”
Nokia (NYSE:NOK) traded up 0.96% during mid-day trading on Tuesday, hitting $6.3001. 23,981,880 shares of the company’s stock traded hands. Nokia has a one year low of $2.52 and a one year high of $6.47. The stock has a 50-day moving average of $4.54 and a 200-day moving average of $3.8. The company’s market cap is $23.387 billion.
Nokia (NYSE:NOK) last posted its quarterly earnings results on Thursday, July 18th. The company reported $0.00 earnings per share for the quarter, beating the analysts’ consensus estimate of ($0.02) by $0.02. The company had revenue of $5.70 billion for the quarter. During the same quarter last year, the company posted ($0.08) earnings per share. Nokia’s revenue was down 24.5% compared to the same quarter last year. On average, analysts predict that Nokia will post $0.05 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on NOK. Analysts at Merrill Lynch upgraded shares of Nokia (NYSE:NOK) from a “neutral” rating to a “buy” rating in a research note to investors on Wednesday, September 11th. Separately, analysts at RBC Capital upgraded shares of Nokia (NYSE:NOK) from a “sector perform” rating to an “outperform” rating in a research note to investors on Wednesday, September 11th. They now have a $2.00 price target on the stock, down previously from $7.00. Finally, analysts at Berenberg Bank upgraded shares of Nokia (NYSE:NOK) from a “sell” rating to a “buy” rating in a research note to investors on Wednesday, September 11th.
Five analysts have rated the stock with a sell rating, twenty have given a hold rating and eleven have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $4.73.
Nokia Corporation (NYSE:NOK) has three operating segments: Devices & Services; NAVTEQ, and Nokia Siemens Networks.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.