- Nokia Corporation (ADR) NOK shares were volatile in 2015, and are up 5 percent since January 4 this year.
- Argus’ Jim Kelleher upgraded the rating for the company from Hold to Buy, with a price target of $12.
- The company is poised to benefit from the synergies resulting from the nearly complete acquisition of Alcatel-Lucent SA (ADR) ALU, Kelleher stated.
Analyst Jim Kelleher mentioned that the all-stock acquisition of Alcatel-Lucent has enabled Nokia to conclude the deal without overburdening its balance sheet. The completion of the deal will allow Nokia to deliver comprehensive solutions across fixed and wireless networks to service providers and other carriers.
Nokia’s ability to offer integrated solutions comes at a time when carriers are concerned about cutting costs while maintaining and improving network security. The merged entity will operate five business groups, namely Mobile Networks, Fixed Networks, IP Optical Networks, Applications & Analytics and Nokia Technologies.
The merged entity will have net cash of €8.1 billion. “As the combined company begins to take shape, we believe investors will regard the new Nokia as attractively valued at current levels,” Kelleher noted.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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