Wells Fargo: Nokia HERE Sale Would Be 'Positive' For Investors

In a report published Tuesday, Wells Fargo analysts maintained a Market Perform rating on Nokia Corporation (NYSE: NOK), while raising the valuation range from $5.50-$6.20 to $6.75-$7.25.Media reports suggest that Nokia has received several offers for its HERE mapping unit and Uber is believed to be offering about $3 billion. The sale is expected to take place by end-May, according to a report in The New York Times.In the report Wells Fargo noted, "A $3B bid would imply a 2.6x multiple, which we see as reasonable given TomTom, which owns mapping competitor Tele Atlas, trades at around 1.8x (HERE is a pure software with mid 70% gross margins versus TomTom with mid-50's gross margins)." The analysts believe the HERE sale would be "positive" since it is non-core and will allow the company to focus on its core business as well as the upcoming acquisition of Alcatel Lucent SA (NYSE: ALU), which is pending approvals.Nokia's growth prospects are likely to continue to be driven by the performance of its Networks segment and IP business. "While we do not believe the HERE business is strategic to Nokia, its financials are immaterial to have an overall impact," the analysts stated.