Canaccord Genuity analyst Michael Walkley released a report on Nokia Corporation (ADR) (NYSE:NOK) following the company’s first-quarter earnings results yesterday. The analyst reiterated a Buy rating on the stock, and reduced the price target to $10 (from $11).

Walkley noted, “Nokia reported mixed Q1/15 results slightly above our estimates; strong HERE results and one-time items drove upside in the Technologies division offset by materially weaker Networks division margins. Management anticipates improving trends in its Networks business through 2015 with expectations for gradually improving global wireless capex macro trends and business mix, combined with Nokia potentially accelerating cost-optimization efforts.”

“While we believe the combination has many strategic long-term merits, we believe Nokia shares represent greater long-term execution risk with respect to integration given European labor laws could prove challenging. For the current Nokia businesses, we anticipate gradually improving Networks business margins in 2015 from the weak Q1/15 levels, combined with the longer-term potential for materially larger and higher margin licensing revenue. In fact, we believe Alcatel Lucent would bolster Nokia’s licensing portfolio.”, the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Walkley has a total average return of 23.1% and a 68.9% success rate. Walkley has a -9.2% average return when recommending NOK, and is ranked #3 out of 3587 analysts.

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