Analysts Getting Bullish on Nokia Following Buyout of Siemens Stake
Commenting on the Nokia (NYSE: NOK) acquisition of Siemen's stake in NSN for EU 1.7B, Bernstein stated that the price was considerably lower than fair value.
Later on in the report, it was stated that Nokia had 'bought itself a future' with the acquisition as the company looks to break into the network business.
The report also noted that Nokia had burnt between EU300 million and EU800 million in cash this quarter, far above street estimates of EU 200 million.
JP Morgan was also bullish on the acquisition, upgrading Nokia to Overweight from Underweight, citing improving prospects for the company's handset unit. The Morgan report also stated that Nokia could negotiate a sale of its handset unit, leading Morgan to bump its price target on the company by a staggering 80 percent.
Following the news, Nokia shares traded up 3.48 percent to $3.87.
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