UPDATE: Goldman Sachs Downgrades Nokia to Sell Post Rally

Goldman Sachs reduced its rating on Nokia

from Neutral to Sell as it sees current rally an exit opportunity. Goldman Sachs noted, "Nokia has outperformed strongly since its 2Q12 report (+50%), driven by: a) lower cash burn (higher IPR income), b) reports of expected 2H12 device launches, c) management share purchases, and d) M&A speculation (Reuters, August 1). Our views on potential for a near-term turn-around and the likelihood of M&A are more sanguine, as reflected in our estimates and multiple methodology. We would therefore use recent strength as a selling opportunity in the context of our 12-month price target of €1.3." Nokia closed at $2.27 on Thursday.