Cowen & Co: Nokia Goes 'Back To The Future In Wrong Direction'

In a report published Friday, Cowen and Company analysts maintained a Market Perform rating on

, with a price target of $8. Nokia reported its 1Q15 revenues and EPS in-line with expectations. The results for the company's Networks segment were, however, quite disappointing. "The company's Networks' GM and opex margin took a significant step back coming in ~ 5pp lower on a Q/Q and Y/Y," the report mentioned. The company attributed Networks' disappointing operational results to new wins in China, unfavorable product mix and an increasingly competitive environment. Nokia revised Networks' operating margin for CY15 to ~9.5 percent, vs Cowen's 10.5 percent and Street's 11 percent. The company also raised its operating profit outlook for CY15 from 7-12 percent to 9-12 percent. "The company's 1Q15 operating results and outlook represents a significant step back from the margin progression NOK has driven – and corresponding appreciation in its share price – over the past three years," the analysts added.