Nokia stock rose in February 2018
Nokia (NOK) stock rose 21% in February 2018. The firm generated significant returns last month after falling marginally by 0.3% in 2017. Nokia is currently trading at $5.80, which is 29% above its 52-week low of $4.51, and 13% below its 52-week high of $6.65. In comparison, peers such as Cisco (CSCO), Ericsson (ERIC), and Hewlett Packard Enterprise (HPE) generated returns of 5.2%, -4.3%, and 11.3%, respectively, in February 2018.
Stock upgraded by Bank of America
Bank of America (BAC) analyst Tal Liani upgraded Nokia’s stock to “buy” from “neutral” and raised the 12-month price target on the stock to $6.53 from $5.60. In 4Q17, Nokia beat analysts’ average EPS (earnings per share) estimate by 36% when the firm reported earnings of $0.15 compared to estimates of $0.11.
Liani expects Nokia to expand operating margins to 14% by the end of 2020, up from 10% in 2017. The analyst also stated that Nokia’s revenue guidance (of revenue decline between 2% and 4%) was conservative and that the firm would surprise investors in future earnings. BAC is optimistic about Nokia’s stable wireline portfolio and expects the company’s IP routing product cycle to drive revenue in the second half of 2018.
Earlier this week, Nokia announced an agreement with China Mobile (FXI) in the 5G space, which will help Nokia gain traction in the world’s most populated country as the two firms will now look to develop 5G networks aimed at the industrial sector.