Nokia: AlphaValue double upgrades stock
(CercleFinance.com) - On Thursday AlphaValue upgraded its rating on Nokia shares from "reduce" to "buy", having increased its target price for them from 4.
7 euros to 5.7 euros, welcoming the "complete turnaround" made by the telecoms equipment manufacturer.
The broker - which highlights a "perfectly executed" strategy by the Finnish group - considers that its outlook to 2023 appears somewhat "cautious" given the good results recently published.
Analysts point out that the group has not updated its forecasts since March and that they are limited - for the time being - to targeting just a 0.5% improvement in its operating margin of between 2021 and 2023.
AlphaValue explains this caution by the loss of the Verizon contract and its expected impact on margins over the coming years.
Despite this, if supply constraints were to ease and growth were to continue, thanks to new customers and developments in the ReefShark chip, analysts believe there could be upside potential, they conclude.
Copyright (c) 2021 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.
7 euros to 5.7 euros, welcoming the "complete turnaround" made by the telecoms equipment manufacturer.
The broker - which highlights a "perfectly executed" strategy by the Finnish group - considers that its outlook to 2023 appears somewhat "cautious" given the good results recently published.
Analysts point out that the group has not updated its forecasts since March and that they are limited - for the time being - to targeting just a 0.5% improvement in its operating margin of between 2021 and 2023.
AlphaValue explains this caution by the loss of the Verizon contract and its expected impact on margins over the coming years.
Despite this, if supply constraints were to ease and growth were to continue, thanks to new customers and developments in the ReefShark chip, analysts believe there could be upside potential, they conclude.
Copyright (c) 2021 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.