NOKNokia Corp (ADR) (NYSE:NOK) announced plans to acquire Gainspeed, a US-based start-up specializing in DAA (Distributed Access Architecture) solutions for the cable industry via its Virtual CCAP (Converged Cable Access Platform) product line. Gainspeed is widely regarded as the industry leader in DAA, which the cable industry has adopted as its next generation solution to address increasing capacity requirements.

Gainspeed’s Virtual CCAP solution would strategically diversify Nokia’s product portfolio for cable access customers and expand Nokia’s footprint in this growing market. Upon the closing of the planned transaction, Gainspeed would become part of Nokia’s Fixed Networks business group.

Virtual CCAP enables cable operators to meet growing customer demand for high-speed data services and IP video. With Virtual CCAP, cable operators can increase the capacity of their existing HFC (Hybrid Fiber Coax) infrastructure and rapidly deploy new services, while simultaneously reducing space and power requirements in the headend. At the same time, customers can cost-effectively migrate their networks to a software-driven, all-IP architecture. With the acquistion of Gainspeed, Nokia would have an extendible and flexible platform that can host the future innovations of the cable industry.

Federico Guillen, president of Nokia’s Fixed Networks business group, said: “We are very excited to have Gainspeed, the technology leader in its field, joining us. Cable is one of the fastest growing areas in our fixed networks business, and we are committed to delivering a complete solution set to cable operators. Gainspeed’s Virtual CCAP perfectly complements our leading fiber access solutions for cable MSOs.”

Gainspeed was founded in 2012 and is privately held. It is located in Sunnyvale, California, and  employs approximately 70 people. The planned transaction is expected to close in Q3 2016, subject to customary closing conditions. (Original Source)

Shares of Nokia closed yesterday at $5.67, down $0.01 or -0.18%. NOK has a 1-year high of $7.63 and a 1-year low of $5.08. The stock’s 50-day moving average is $5.60 and its 200-day moving average is $6.30.

On the ratings front, Nokia has been the subject of a number of recent research reports. In a report issued on June 8, Credit Suisse analyst Kulbinder Garcha maintained a Buy rating on NOK. Separately, on May 25, CLSA’s Avi Silver upgraded the stock to Buy and has a price target of $6.25.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Kulbinder Garcha and Avi Silver have a total average return of 7.6% and 13.4% respectively. Garcha has a success rate of 56.1% and is ranked #327 out of 3903 analysts, while Silver has a success rate of 73.3% and is ranked #774.

The street is mostly Bullish on NOK stock. Out of 11 analysts who cover the stock, 8 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $6.50, which represents a potential upside of 14.4% from where the stock is currently trading.

Nokia Oyj provides network infrastructure, technology and software services. It operates through the following segments: Mobile Broadband, Global Services, and Nokia Technologies. The Mobile Broadband segment engages in the provision of flexible network solutions for mobile voice and data services through its Radio and Core business lines. The Global Services segment provides mobile operators with services to create and maintain effective networks. The Nokia Technologies segment focuses on advanced technology development and licensing.