Nokia: Oddo still a buyer, but cuts TP

(CercleFinance.com) - Oddo BHF maintains its "buy" rating on the Nokia for the moment, giving management benefit of the doubt (in a difficult sector where a several managers have in turn disappointed).
The broker has however cut its corresponding target price by 20% to 3.6 euros.

While the telecom equipment manufacturer has published quarterly results that overall are in line with estimates, the analyst underlines that in particular it warned about 2020, given a 2021 margin guidance that is well below expectations, while it withdrew its 3/5 year OM targets of between 12% and 14%.

Taking into account the new guidance, Oddo is revising its EPS estimates for 2020 by 9% and 2021 by 30%. It has reduced its revenue forecast, now expecting a 2% decline in revenue with a MOP of 8.3%, slightly below the middle of its guidance.

The share is up over 2.5% on Friday morning.


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