Nokia: Liberum cuts target price
(CercleFinance.com) - Liberum sticks to its "hold" rating on the Nokia share, although has cut its corresponding target from 4.
9 euros to 3.6 euros, in the wake of a reduction in its forecasts, which it now aligns with new targets set by management of the Finnish telecom equipment supplier.
"By putting in realistic margin expectations for 2019 and 2020, Nokia has now contained further downside risks to the stock," the broker acknowledges, which also hails the group's plan to increase investments in 5G.
"However, the wireless infrastructure business remains challenging and we believe it will take time for the company to raise its operating margins to the 12%-14% range, particularly if the 5G cycle itself starts to ebb from around 2022," the broker warns.
Copyright (c) 2019 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.
9 euros to 3.6 euros, in the wake of a reduction in its forecasts, which it now aligns with new targets set by management of the Finnish telecom equipment supplier.
"By putting in realistic margin expectations for 2019 and 2020, Nokia has now contained further downside risks to the stock," the broker acknowledges, which also hails the group's plan to increase investments in 5G.
"However, the wireless infrastructure business remains challenging and we believe it will take time for the company to raise its operating margins to the 12%-14% range, particularly if the 5G cycle itself starts to ebb from around 2022," the broker warns.
Copyright (c) 2019 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.