Canaccord Pounds the Table on Nokia Corporation
Canaccord analyst Michael Walkley was out pounding the table on Nokia Corporation (ADR) (NYSE:NOK) Tuesday, reiterating a Buy rating and a $10 price target, which represents a potential upside of 37% from where the stock is currently trading.
Walkley wrote, “Despite soft Q1/15 Networks results, we anticipate steadily improving trends in the Networks business through 2015 with our expectations for gradually improving global wireless capital spending trends combined with our belief Nokia continues to manage costs. We also anticipate improving trends in the Technologies business. In fact, we believe the recent LG Electronics arbitration agreement ahead of the Samsung arbitration positions Nokia for strong long-term growth in its Technologies division and creates precedent for other leading OEMs to enter arbitration once current deals expire.”
Furthermore, “Following the recent approval for the Alcatel acquisition by the US DoJ, we believe the Alcatel-Lucent acquisition remains on track to close by H1/16 with the combined company anticipated to deliver its €900M cost synergy target by 2019. We incorporate Alcatel-Lucent in our model starting in Q2/16 and introduce our 2017 combined company estimates.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst T. Michael Walkley has a total average return of 24.9% and a 71.4% success rate. Walkley has a -0.7% average return when recommending NOK, and is ranked #5 out of 3640 analysts.
Out of the 19 analysts polled by TipRanks, 7 rate Nokia Corp stock a Buy, 11 rate the stock a Hold and 1 recommends Sell. With a return potential of 20.9%, the stock’s consensus target price stands at $8.83.