Nokia Scores Three-Year 5G Contract With Finnish Shared Network

Nokia (NOK) has announced that it has been selected by Finnish Shared Network Ltd (SYV) – a joint operation by DNA Oyj and Telia Finland Oyj – as a supplier of 5G radio network equipment including deployment and managed services.

The modernized network will enable SYV to provide advanced 5G services in a cost-efficient manner across northern and eastern parts of Finland, Nokia explained.

The deal will see Nokia replace SYV’s current radio access network equipment, offer digital deployment for faster time to market, and comprehensive managed services over the course of the three-year rollout.

Nokia will be the provider responsible for the network infrastructure upgrade, providing field maintenance, network monitoring and implementation services. The deployment of this entirely new infrastructure will begin in early 2021 and is expected to be completed by the end of 2023.

Tommi Uitto of Nokia, stated: “We take great pride in being selected as the trusted partner to modernize SYV’s network infrastructure and pave the way to a 5G-enabled future for its customers. Our product and service portfolio is ideal for organizations aiming to capitalize on the latest technology trends.”

Shares in the Finnish telecom giant are up 16% on a year-to-date basis. With an average price target of $5.22, analysts forecast upside potential of 21% over the next year. Meanwhile the cautiously optimistic Moderate Buy analyst consensus breaks down into 4 Buys versus 3 Holds.

Northland analyst Tim Savageaux has a Buy rating on the stock with a Street high $6.50 price target (51% upside potential). He believes that Nokia’s recent entry into the Data Center switch market presents a sound opportunity and “serves as a timely reminder of the breadth and depth of NOK technology capabilities beyond wireless.”

“While we continue to find NOK shares compelling from a sum of parts perspective, given the positive impact of increased traffic demands across the company’s IP/Optical and Fixed Access segments, we also find the stand alone fundamental story compelling,” he summed up. (See Nokia stock analysis on TipRanks)

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