UPDATE: Credit Suisse Downgrades Nokia Corporation to Neutral on Challenging Path to Profitability

Credit Suisse reduces its rating on Nokia Corporation

from Outperform to Neutral and reduces its price target from €4.5 to €2.0. Credit Suisse notes, "Post Nokia's Q2 profit warning, we note that the company's path to recovery in smartphone business has proven to be more challenging than our initial expectations. Given continued competitive pressures in smartphones (both at high-end from Apple and at lower end from Android) and slower traction on Windows Phone, we believe that the company may deliver OMs of 6% in its D&S business in 2013 driving EPS of Eu0.13. As such, we lower our rating to Neutral (from Outperform) with TP of Eu2.00 (from Eu4.50)." NOK closed at $2.35 on Thursday.