Dow Jones: Evli Bank Upgrades Nokia Ahead Of 1Q Results
MARKET TALK: Evli Bank Upgrades Nokia Ahead Of 1Q Results
Last update: 4/17/2013 6:00:40 AM
1001 GMT [Dow Jones] Evli Bank upgrades Nokia (NOK1V.HE) to buy from accumulate ahead of 1Q results Thursday April 18. Nudges up the price target to EUR3.2 from EUR3.1. Relative to consensus, the brokerage says it is more bullish in Smart Devices volumes and more bearish in Mobile Phones volumes. Says Total Devices & Services revenues should be a positive surprise, further supporting the upgrade. Says Lumia sales could surprise positively. Consensus expects six million smartphones at an average selling price of EUR187 with the vast majority from the Lumia WP range. Cites several catalysts including Chinese high-end shipments of Lumia 920 variants in 1Q and ramp up of Lumia 620 since early January. Shares +0.9% at EUR2.62
(END) Dow Jones Newswires
April 17, 2013 06:00 ET (10:00 GMT)
This really was a great stock to play games with. The re-organization with a burning platform memo took this great company to it's knees. Almost impossible to get any glimpse of future performance.
Looking 1 year out, I'll throw out some thoughts on devices.
Evli puts out $250 for average Lumia. Margins are horrible with the closing of so many facilities & contracting out manufacturing. With Vietnam in full operation, I think we can expect 8% net.
Smart-phones for the masses will bring down average price, guesstimate, $200. or $16 bottom line.
If we didn't sell 7M Lumia this Q, we could have, if not for supply/manufacturing capacity.
In one year, I don't see a problem with 15M Q devices or a $B net. ($.25 PS/Y). cheaper devices will diminish in #'s but still add to the bottom line.
NSN is still a complete unknown. Will we own 100% next year or will it be sold?
1 year & Navtaq will finally be getting some rewards for the amount of devices out there.
Patent rev. should only increase, 1 Y out. $800M seems doable, maybe even low.
As a growth stock, $12.
double that with great execution & continuous release of great tech.