Market Overview

Wells Fargo Sees 'Little Impact' to Industry Dynamics Following MSFT/NOK Deal, Could Push Apple to Hasten Fourth-Screen Strategy

Share:
Related MSFT
Kevin Kelly's Microsoft Corporation Trade
Meeks: Tech Sentiment 'Nasty,' But There Are Buying Opportunities
Following Alpha: Franchise Partners - Q4 2015 Review (Seeking Alpha)
Related NOK
Most Of Credit Suisse's Top Investment Ideas For 2016...In One Place
Cisco, Alcatel And Nokia: Who Can Beat Earnings Expectations?
1 Free Swiss Franc? (Seeking Alpha)

Wells Fargo's Maynard Um issued a note Tuesday morning considering some industry implications of the deal between Microsoft (NASDAQ: MSFT) and Nokia (NYSE: NOK).

The Wells Fargo analyst believes "there will be little impact to the overall industry dynamics and some opportunity for other vendors during the transition."

Um noted the deal does not make Nokia's "portfolio immediately more competitive." Um does however believe the deal places "more financial muscle behind the products and could eventually create a more compelling device if MSFT can better integrate its portfolio of assets, particularly Xbox & its content as well as its installed base of Windows-based PCs."

Um said he was surprised by the valuation, but said the deal "makes sense in that it puts the fate of MSFT's mobile OS, in its own hands rather than in the hands of a partner."

Related to Apple (NASDAQ: AAPL), Um believes there will be no near- or medium-term implications from the Microsoft, Nokia deal, but he did say the news "could light a fire under the company to accelerate its 4th screen (TV/content) strategy."

Considering BlackBerry's (NASDAQ: BBRY) current pickle, Um noted "few options for BBRY," pointing out "the possibility of a take-out is likely to keep the stock in a holding pattern near-term" despite the "struggling" core business.

Latest Ratings for MSFT

DateFirmActionFromTo
Feb 2016Hilliard LyonsDowngradesLong-term BuyNeutral
Jan 2016Credit SuisseMaintainsOutperform
Jan 2016Morgan StanleyUpgradesEqual-weightOverweight

View More Analyst Ratings for MSFT
View the Latest Analyst Ratings

Posted-In: Analyst Color News Analyst Ratings

 

Related Articles (AAPL + BBRY)

View Comments and Join the Discussion!

Get Benzinga's Newsletters