Raymond James upgraded Nokia for improving conditions14. 03. 2022 Monday / By: Robert Denes / Business / Exact time: BST / Print this page
N okia shares rose sharply during the week after Raymond James upgraded the Finnish telecommunications company, noting that the company is seeing an "improving competitive position" and rebuilding trust in management.
Analyst Simon Leopold has raised his rating to outperform the market and has set a price target of $ 6.50, up about 30% from current levels. Leopold noted that Nokia (NOK) has undergone a change in its business and that the company has recently been repurchased and that the company’s financial position has improved due to the “likely” re-introduction of the dividend.
“We envision strength in the wired access and routing segment, as well as potential options in the optical and mobility segments,” Leopold wrote in a note to customers.
The analyst noted that Nokia (NOK) is likely to introduce an annual dividend in April, which would give it a 1.8% return, and if consumer demand sounds “real,” investor skepticism could be mistaken.
“Although we suspect that some providers have recalled orders, we have doubts that a double order poses a significant risk,” Leopold added. "We look forward to the wired access and then the routing business; we believe Nokia can raise prices and gain stakes in these two areas."