Nokia: Credit Suisse no longer a buyer
(CercleFinance.com) - This morning Credit Suisse downgraded its buy rating ("outperform") on the stock of the Finnish telecom equipment manufacturer Nokia to "neutral".
The broker also cut its target price for the share from 5 euros to 4.2 euros (-16%).
Admittedly, analysts have raised their operating profit forecasts for 2017 and 2018 to first take into account the multi-year license agreement announced just before Christmas between Nokia and the Chinese group Huawei. In addition, there was an improvement in the margin trend of the core Networks business, its report points out.
However, Credit Suisse has also made longer-term forecasts, which are lower than those of the consensus for 2019. The broker also believes that the group's earnings will only increase slightly over the next three years, which justifies its rating downgrade.
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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 broker also cut its target price for the share from 5 euros to 4.2 euros (-16%).
Admittedly, analysts have raised their operating profit forecasts for 2017 and 2018 to first take into account the multi-year license agreement announced just before Christmas between Nokia and the Chinese group Huawei. In addition, there was an improvement in the margin trend of the core Networks business, its report points out.
However, Credit Suisse has also made longer-term forecasts, which are lower than those of the consensus for 2019. The broker also believes that the group's earnings will only increase slightly over the next three years, which justifies its rating downgrade.
Copyright (c) 2018 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.