Wunderlich Securities Raises Nokia Price Target

Nokia Corporation

reported mixed 3Q10 results on upside revenue despite supply constraints, Wunderlich Securities reports. Pricing remained relatively stable in a quarter without meaningful contribution from higher-end products that have since begun to ship to positive reviews “We are decreasing our 4Q10 earnings estimate despite increase to our revenue forecast due to margin headwinds,” Wunderlich Securities writes. “We expect the company to execute through supply chain challenges next year and our 2011E EPS is unchanged. With the effect of time, our net present value calculation, and the positive longer-term implications of demand implied by the revenue performance, we are elevating our target price to €9.50 from €9.00.” Wunderlich Securities said that it believes better price stability implies an improving environment for execution. Because of this and the effect of time (another quarter) on its calculation of the present value of future earnings, Wunderlich Securities is elevating its 12-month price target to €9.50 from €9.00.