UPDATE: Oppenheimer Upgrades Nokia Corporation (ADR)

In a note published Monday morning, Oppenheimer analyst Ittai Kidron upgraded shares of Nokia Corporation (ADR) NOK to Outperform and set a $12 price target.

Kidron commented, "We believe Nokia is executing well and could sustain better than expected profits, while HERE and IPR could deliver upside in 2015 and thereafter. At the same time, strong cash flow is protected with tax credits allowing for rising returns."

In terms of margins, Kidron ees its margins coming in at 9.5 percent in 2014 and 9.1 percent in 2015, which at the high end of management's five percent to 10 percent long-term target.

Looking ahead, Kidron is predicting an EPS of $0.09 in the third quarter and $0.34 for fiscal 2014