Canaccord Reiterates Buy on Nokia Corporation (ADR) Following Strong 3Q:15 Results
In a research report issued today, Canaccord analyst Michael Walkley reiterated a Buy rating on shares of Nokia Corporation (ADR) (NYSE:NOK), with a price target of $10, after the mobile networks company reported strong third-quarter results above consensus estimates, driven primarily by a strong Networks division margins. Nokia shares reacted to the results, rising 10.24% to $7.32 on heavy volume, making it among the top winners today.
Walkley noted, “We believe Nokia’s continued focus on maintaining tight cost controls demonstrates the strong management execution heading into the Alcatel Lucent merger.” Furthermoer, “We maintain our expectation for the Technologies business to deliver materially larger and higher-margin licensing revenue longer term with the Samsung arbitration potentially resolved by year-end. Finally, with the upcoming Alcatel-Lucent acquisition on track to close by Q1/2016, we now anticipate the combined company can deliver its €900M cost synergy target by 2018 or a year earlier than its previous 2019 target. Following strong Alcatel-Lucent Q3/15 results and progress with margins announced earlier today, we have updated our combined company model that assumes the acquisition closes by Q1/2016 with our combined estimates starting in Q2/2016.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Walkley has a total average return of 17.6% and a 63% success rate. Walkley has a -5.7% average return when recommending NOK, and is ranked #10 out of 3808 analysts.
Out of the 15 analysts polled by TipRanks, 7 rate Nokia Corp stock a Buy, 7 rate the stock a Hold and 1 recommends a Sell. With a return potential of 25%, the stock’s consensus target price stands at $9.16.