Nokia: first 'buy' recommendation from SocGen.
(CercleFinance.com) - Société Générale (SocGen) has issued a “buy” rating for the Nokia share.
The note cites “outstanding resilience in harsh market conditions”. The 12-month price target associated with the recommendation is set at 7.8 euros.
SocGen's specialists specify that the margins of the Nokia Networks division, which are 90% of sales “showed great resilience in a very difficult market in 2016, thanks to impeccable execution in restructuring and a very successful integration of Alcatel”.
They also consider that “a strong start to 2017 suggests Nokia is gaining in market share, possibly at the expense of key competitor Ericsson”.
According to SocGen, Nokia is in a position to meet, or even exceed its Nokia Networks margin guidance for the year. EBIT margins of 13 to 14% in a couple of years seem possible.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The note cites “outstanding resilience in harsh market conditions”. The 12-month price target associated with the recommendation is set at 7.8 euros.
SocGen's specialists specify that the margins of the Nokia Networks division, which are 90% of sales “showed great resilience in a very difficult market in 2016, thanks to impeccable execution in restructuring and a very successful integration of Alcatel”.
They also consider that “a strong start to 2017 suggests Nokia is gaining in market share, possibly at the expense of key competitor Ericsson”.
According to SocGen, Nokia is in a position to meet, or even exceed its Nokia Networks margin guidance for the year. EBIT margins of 13 to 14% in a couple of years seem possible.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.