Canaccord Remains Positive On Nokia Corporation Following Mobile World Congress Meetings


In a research report published today, Canaccord Genuity analyst Michael Walkley maintained a Buy rating on Nokia Corporation (ADR) (NYSE:NOK) with a $12 price target, after attending Nokia’s press and analyst event at Mobile World Congress and hosting an investor meeting with Ramzi Haidamus, President of Nokia Technologies,

Walkley wrote, “We maintain our positive long-term thesis given the long-term growth potential for all three divisions and increasing cash returns longer term. With our belief the Networks business is well positioned to maintain strong margins and drive solid cash flows combined with the longer-term potential for materially larger and higher margin licensing revenue and HERE sales, we believe Nokia shares represent an attractive long-term investment opportunity.”

Furthermore, “We believe Nokia’s current guidance licensing revenue would grow in 2015 from the current €600M annual run-rate excluding the Samsung arbitration outcome understates the long-term potential for this business unit now that Nokia no longer will cross license its own mobile device business. We believe the Samsung arbitration ruling in 2015 and new initiatives to monetize patents provide strong longerterm high-margin growth opportunities. We also anticipate sustained strong margins in Networks with slightly faster than industry growth and strong long-term sales growth with margins expanding in the HERE division.”

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 25.6% and a 71.5% success rate. Walkley has a 1.1% average return when recommending NOK, and is ranked #4 out of 3508 analysts.

 

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