Nokia Upgraded to Outperform by Credit Suisse (NOK)
Nokia (NYSE:NOK) was upgraded by Credit Suisse from a “neutral” rating to an “outperform” rating in a research note issued on Wednesday, TheFlyOnTheWall.com reports.
The analysts wrote, “dated our SOTP analysis for Nokia, and we now see upside to €6.0 at least. In particular, we believe Nokia’s transformative deal with Microsoft allows it to drive significant value creation from its vast patent portfolio, which we believe is applicable to the whole CE industry,” according to Garcha. The analyst sees Nokia’s licensing deals worth at least €2.30 per share given the following three factors. deals “with a number of key players in the industry over the last few years (Apple, Qualcomm and BlackBerry) serve as a proof point as to the strength of the company’s IPR. Additionally, we believe it can grow its annual royalty run-rate of €500mn by a further 40% pursuing licensing agreements with currently unlicensed handset vendors.”"Second, 90% of Nokia’s patents today are unlicensed and we believe its IPR, especially in areas such as chipsets and OS, can be applied not only to the handset market but also to the wider CE market.”"Third, the strategic importance of Nokia’s IPR also makes this an acquisition target potentially for Qualcomm, Intel, Apple, Huawei, Google, Ericsson, Samsung or a consortium of tech companies, driving a higher take-out value.”
Nokia (NYSE:NOK) traded up 5.90% on Wednesday, hitting $6.64. 44,523,608 shares of the company’s stock traded hands. Nokia has a 52-week low of $2.52 and a 52-week high of $6.47. The stock has a 50-day moving average of $4.6 and a 200-day moving average of $3.86. The company’s market cap is $24.649 billion.
Nokia (NYSE:NOK) last posted its quarterly earnings results on Thursday, July 18th. The company reported $0.00 EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.02) by $0.02. The company had revenue of $5.70 billion for the quarter. During the same quarter in the previous year, the company posted ($0.08) earnings per share. The company’s revenue for the quarter was down 24.5% on a year-over-year basis. 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 Bank of America Corp. upgraded shares of Nokia (NYSE:NOK) from a “neutral” rating to a “buy” rating in a research note to investors on Tuesday. They now have a $7.07 price target on the stock, up previously from $6.19. Separately, 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. Finally, 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.
Five equities research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating and twelve have assigned a buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of $4.73.
Nokia Corporation (NYSE:NOK) has three operating segments: Devices & Services; NAVTEQ, and Nokia Siemens Networks.
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