Canaccord Genuity analyst Michael Walkley came out with an update on Nokia Corp (NYSE:NOK), as the company reported fourth-quarter results that were above Walkley’s estimates, and was driven by strong Networks division revenue and operating margin.
The analyst reiterated a Buy rating on the stock, but reduced the price target to $12 (from $13) due to updated F/X rates.
Walkley noted, “With our belief the Networks business is well positioned to maintain strong margins and drive positive cash flows combined with the longer-term potential for materially greater sales from the higher-margin Technology licensing and HERE businesses, we believe Nokia shares represent an attractive long-term investment. We believe Nokia’s guidance licensing revenue would grow in 2015 from the current €600M annual run-rate excluding the Samsung arbitration outcome understates the long-term potential for this business unit now that Nokia no longer will cross license its own mobile device business. We believe the Samsung arbitration ruling in 2015 and new initiatives to monetize patents provide strong longer-term high-margin growth opportunities. We also anticipate sustained strong margins in Networks and long-term growth with margins expanding in the HERE division.”
Nokia Corporation engages in the network infrastructure, location-based technologies, and advanced technologies businesses worldwide.