Canaccord top analyst Michael Walkley weighed in on shares of Nokia Corp (ADR) (NYSE:NOK), reiterating a Buy rating, while reducing the price target to $6.00 (from $7.00), as he believes that the industry macro and pricing environment remain challenging, especially after Ericsson issued a negative pre-announcement today.

Walkley commented, “Consistent with our reduced Ericsson estimates, we believe industry trends will remain soft through 2017. While we believe Nokia should benefit from healthier spending levels in China and the United States markets, we are lowering our overall estimates given macro concerns and our belief price competition will remain tough through C2017.”

“While we anticipate improving margin trends in 2H/2016 as management executes on its ongoing cost-cutting programs, we have tempered our gross margin expansion assumptions for 2H/2016 through 2018 due to our belief price competition and weak macro conditions will persist. We believe Nokia management has a strong track record of operational excellence and will continue its strong execution on cost-cutting initiatives following the Alcatel Lucent acquisition,” the analyst continued.

As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Michael Walkley has a yearly average return of 14.9% and a 61% success rate. Walkley has a -3.7% average loss when recommending NOK, and is ranked #30 out of 4183 analysts.

Out of the 19 analysts polled by TipRanks, 15 rate Nokia stock a Buy, while 4 rate the stock a Hold. With a return potential of 40%, the stock’s consensus target price stands at $7.15.