NOKIANEWS - News of the Nokia

Barclays cuts price target and downgrades Nokia shares to underweight

20. 01. 2024 Saturday / By: Robert Denes / Business / Exact time: BST / Print this page

B ritish investment bank Barclays revised its rating on Nokia shares and decided to downgrade it. The target price was reduced from EUR 4.60 to EUR 3.00. Instead of 'Equal Weight', Nokia shares are now classified as 'Underweight'. The reason behind the decision is that the Finnish telecommunications equipment manufacturer's RAN technology sales in North America have almost halved in the past year.

Analyst Joseph Zhou explained in a recent industry study that this downward trend is far from over. The slowing trends are also clearly visible from the data of the 5G base stations in India. These figures suggest that the negative trend will continue. In addition, Nokia's longer-term structural risk has increased as tech giant AT&T embraces Open RAN technology. AT&T's decision to adopt Open RAN is a risk for Nokia, as the Finnish company has previously relied heavily on its own RAN technology.

With Open RAN technology, alternative service providers can enter the market and compete with Nokia. Downgrade by Barclays analysts has a direct impact on Nokia shares. Investors are restless, Nokia's share price is under pressure.


Via Link
gifgifgif



Phone

+44

Address

Canning Town, Barking Road
London E13 8EQ
United Kingdom