Skip to main content

Market Overview

Raymond James Upgrades Nokia, Cites Improved Wireless Spending Trends

Raymond James Upgrades Nokia, Cites Improved Wireless Spending Trends

Improving trends in wireless spending could boost other Nokia Oyj (NYSE: NOK) segments like routing and optical, according to Raymond James. 

The company has a diverse portfolio and stands to benefit from a “global backlash against Huawei,” the newly bullish sell-side firm said. 

The Analyst

Analyst Simon Leopold upgraded Nokia from Market Perform to Outperform and set a $7.50 price target. 

The Thesis

Nokia's routing, optical and mobility businesses are poised to benefit from the emerging 5G cycle and global wireless spending trends, Leopold said in the Tuesday upgrade note. 

When the 4G spending cycle emerged, there was an increase in routing and optical spending in North America, the analyst said. This increase in spending is an indicator of a mobility cycle, he said. 

Although it is difficult to estimate 5G prospects or wireless spending, Leopold said U.S. telecom spending could increase 3 percent in 2019. Checks suggest a shift in spending in favor of wireless-related projects, beginning with core network activity, he said. 

A global anti-Huawei push presents an opportunity for Nokia, the analyst said. Even a 1-percent share gain by Nokia in radio access network, routing, optical and associated services could translate to $343.4 million, $200.3 million and $200.3 million opportunities, respectively, Leopold said. 

Price Action

Nokia shares were up 1.83 percent at $6.14 at the time of publication Tuesday. 

Related Links:

3 Reasons Why BMO Thinks Nokia Will Outperform

Jim Cramer Shares His Thoughts On US Steel, Nokia And More

Latest Ratings for NOK

Sep 2020Raymond JamesDowngradesStrong BuyMarket Perform
Jul 2020JP MorganDowngradesOverweightNeutral
Jun 2020JP MorganMaintainsOverweight

View More Analyst Ratings for NOK
View the Latest Analyst Ratings


Related Articles (NOK)

View Comments and Join the Discussion!

Posted-In: Raymond James Simon LeopoldAnalyst Color Upgrades Eurozone Price Target Markets Analyst Ratings Best of Benzinga

Latest Ratings

NIUDaiwa CapitalInitiates Coverage On41.5
QMCONorthland Capital MarketsInitiates Coverage On12.0
IBKRJefferiesInitiates Coverage On89.0
MRETFTD SecuritiesDowngrades18.5
SWKSGoldman SachsDowngrades135.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at