Nokia Corp (ADR) (NYSE:NOK) and Hewlett Packard Enterprise Co (NYSE:HPE) announced a strategic collaboration on Internet of Things (IoT) solutions for enterprise customers.
The companies will jointly market and sell solutions for two IoT vertical enterprise segments, including industrial/manufacturing and smart city applications. They will provide industrial/manufacturing customers with solutions for asset management, smart manufacturing, remote site automation and predictive maintenance, and enhanced networking choices for improved connectivity for smart city solutions, such as smart lighting and smart buildings.
According to research firm Markets and Markets, the IoT market for smart cities and manufacturing will reach USD 161 billion by 2020. The markets will grow as manufacturing companies use IoT to improve productivity in the production process and the supply chain, and as cities with growing populations use IoT to improve operational efficiency, maintain and protect their infrastructure, and operate in a sustainable manner.
The joint offerings combine connectivity, core networking, data aggregation and compute technologies from Nokia and HPE. The companies are currently working on a proof-of-concept for smart cities, combining Nokia’s routing capabilities with HPE’s Hybrid IT capabilities for joint project delivery models.
The IoT partnership extends the existing collaboration between the two organizations, which to date includes end-to-end deals with 25 enterprise and service provider customers, and more than 30 proof-of-concepts.
Kathrin Buvac, chief strategy officer at Nokia, said: “We are pleased to extend our partnership with HPE into the IoT space. HPE’s market presence offers Nokia expedited and increased access to the enterprise market and target verticals along with a complimentary portfolio of products and services.”
Antonio Neri, executive vice president, Head of Enterprise Group at HPE, said: “The addition of Nokia to the HPE IoT partner ecosystem will bring broader choice and market-leading technologies to our joint customers. HPE and Nokia have a long history of innovation that will help our customers through their journey of digitization.” (Original Source)
Shares of Nokia are currently trading at $4.32, up $0.03 or 0.58%. NOK has a 1-year high of $7.55 and a 1-year low of $4.04. The stock’s 50-day moving average is $5.05 and its 200-day moving average is $5.52.
On the ratings front, Nokia has been the subject of a number of recent research reports. In a report issued on November 17, Credit Suisse analyst Kulbinder Garcha reiterated a Buy rating on NOK, with a price target of $5.35, which implies an upside of 25% from current levels. Separately, on November 16, Wells Fargo’s Maynard Um reiterated a Hold rating on the stock and has a price target of $4.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Kulbinder Garcha and Maynard Um have a yearly average return of 7.8% and 10.5% respectively. Garcha has a success rate of 62% and is ranked #215 out of 4241 analysts, while Um has a success rate of 61% and is ranked #314.
Overall, one research analyst has rated the stock with a Sell rating, 3 research analysts have assigned a Hold rating and 6 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $4.71 which is 9.8% above where the stock closed yesterday.
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.