UPDATE: Credit Suisse Downgrades Nokia to Underperform on Margin Pressures

Credit Suisse reduced its rating on Nokia

from Neutral to Underperform on an outlook of operating losses, cash burn and challenging transitions ahead for the company. Credit Suisse noted, "We believe that the move to Windows Phone 8 presents yet another slow challenging transition, which combined with a GM drag for WP7.5 will lead to D&S operating loss of ~€ 750mn in 2013 even allowing for current restructuring (significantly higher than consensus at €€65mn profit) and barely improving from 2012 levels of ~€€800mn loss. Even beyond the current restructuring program, we believe that further restructuring may be needed (we think this could be to the tune of € 1bn)." Nokia closed at $2.58 on Friday.