This article was originally published on TipRanks.com
Telecommunications giant Nokia Corporation (NYSE:NOK) recently announced that the company has been selected by Elisa Estonia as the sole provider of 5G RAN. The deployment of 5G RAN by Nokia will roll out following the completion of Estonia’s spectrum auction in early 2022.
Following the news, shares of the company declined 1.7% to close at $5.91 in Monday’s trading session.
Along with 5G RAN deployment, Nokia will also replace the existing 4G infrastructure in a five-year deal.
Notably, under the terms of the deal, Nokia will provide equipment from its ReefShark System on Chip-powered AirScale equipment portfolio covering Elisa’s nationwide radio network across the country.
President of Mobile Networks at Nokia, Tommi Uitto said, “We are delighted to have been selected by Elisa Estonia in this deal and for their trust in our technology leadership. Our AirScale portfolio will deliver cutting-edge connectivity to their customers and I look forward to working closely with them on this project and beyond.”
Yesterday, Morgan Stanley analyst Dominik Olszewski initiated coverage on the stock with a Buy rating and a price target of $7.50, which implies upside potential of 26.9% from current levels.
Consensus among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average Nokia stock price prediction of $7.23 implies upside potential of 22.3% from current levels. Shares have gained about 51.5% over the past year.
Hedge Funds Confidence
TipRanks’ Hedge Fund Trading Activity tool shows that hedge fund confidence in Nokia is currently Neutral. However, the cumulative change in holdings across the six hedge funds that were active in the last quarter was a decrease of 107,200 shares.
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