Wells Fargo Reiterates Market Perform on Nokia on Positive Outlook
In a report published Tuesday, Wells Fargo Securities analyst Maynard Um reiterated a Market Perform rating on Nokia Corporation (NYSE: NOK).
In the report, Wells Fargo Securities noted, “We view this positively for Nokia, as we believe the path for the Device & Services business was fraught with peril given competitive forces and its limited product acceptance. This sale and the buyout of the Nokia Siemens Network (NSN) joint venture all but completes the transformation of Nokia into a network infrastructure-focused business. The €3.79B relating to the sale of the business is 0.36x price to sales when annualizing the run from H1 2013. On a pro forma basis, the deal is accretive with Nokia, excluding Device & Services, having generated €0.8B in operating profit in H1 2013 versus $0.5B including it. Nokia will also strengthen its balance sheet, in our view, and would have ended Q2 with €7.8B in net cash if the sale and NSN purchase had closed last quarter. The company is targeting a return to being an investment grade company.”
Nokia Corporation closed on Friday at $3.90.
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