Bernstein has not had the best track-record re upgrades/downgrades concerning NOK.
Goldman Sachs reinstated coverage on Nokia (NYSE: NOK) with a Buy rating and a price target of $9.90.
Analyst Alexander Duval said, "We remove the Not Rated designation from Nokia shares and reinstate a rating with a Buy. In our view the market is missing: (1) sustainability of Networks margin, given our view on wireless infrastructure market structure improvement and operational transformation; (2) upside related to monetising patents more aggressively as cross-licenses are re-negotiated and a broader TAM harvested; (3) value creation potential related to HERE maps, as in-dash navigation penetration rises and operational gearing drives margin expansion.
Hopefully, whatever it is, it is already in the hands of the tech bloggers, and so we get reviews tomorrow, too!
Nokia Capital Markets Day 2014
Nokia sets key 2015 and long-term financial targets, outlines operational and strategic priorities
Stock exchange release
November 14, 2014 at 09:00 (CET +1)
London, UK - Today, at its Capital Markets Day event, Nokia outlined its company vision and strategic priorities for its three businesses, set key 2015 and long-term financial targets for the company and detailed the operational priorities it expects will help create sustainable value for the long term.
"The rapidly evolving world of technology provides the context for Nokia's vision and strategy: now it's about connecting things as well as people, and we expect to see more than 50 billion connected things - devices, modules and sensors - by 2025. We believe we have a powerful role to play in this world, a role of expanding the human possibilities of technology," said Nokia President and CEO, Rajeev Suri.
"This meeting with investors comes on the heels of a quarter where we demonstrated growth across our three businesses. It showed the potential of this company when it starts to execute well," Suri said.
Nokia Group CFO Timo Ihamuotila added: "The foundations for Nokia are solid. We have a strong balance sheet and are making clear progress with our capital structure optimization program."
"As said before, recommencing an ordinary dividend is one of our main priorities, and we expect to continue to repurchase shares as part of our capital structure optimization program," Ihamuotila said.
Given Nokia's pioneering role in connecting people and its strong technology capabilities, the company's vision is to expand the human possibilities of the connected world. Each of Nokia's three businesses is well-placed to contribute to reaching this vision.
To tap the opportunities ahead and leverage its strong assets, Nokia will focus its approach to value creation on four areas:
- Disciplined business portfolio management and capital allocation;
- Clear business-specific strategies;
- Operational excellence; and
- A high-performance culture and strong values.
Looking at market dynamics, the competitive environment and the challenges that operators are facing, Nokia Networks' strategy is to build on its current momentum while transforming to serve the operator of the future. The target is to grow slightly faster than the market over the long-term, create best-in-class, high quality products and services, and deliver on profitability goals.
The strategy for HERE is to leverage the location cloud and superior content in segments where Nokia can differentiate and capture value. The target is to win in automotive, grow in the enterprise segment and leverage the unique assets that HERE has with leading Internet players, while improving profitability through increased efficiency.
Nokia Technologies' strategy builds on its world-leading patent portfolio. It will focus on patent, technology, and brand licensing as well as investment in products and services incubation based on Nokia's innovation.
Nokia's operational approach will help it execute its strategies. There will be a clear focus on operational excellence with the Nokia Business System (NBS), which provides a shared set of operating practices to create value across the three businesses. NBS includes three elements: investment optimization, performance management and talent management. Nokia also continues to target further improvement in its operations going forward, with a clear focus on efficiencies through automation and disciplined processes.
In addition to operational excellence, we are introducing a common, high-performance culture across the company. This is a long term project based on Nokia's new values, and it will be implemented with discipline and rigor.
- Nokia targets to grow Nokia Networks' net sales slightly faster than the market over the long-term.
- Nokia now targets Nokia Networks' long-term non-IFRS operating margin range to be 8% to 11%. This compares to Nokia's previous target for Nokia Networks' long-term non-IFRS operating margin range to be 5% to 10%.
- Nokia targets to record tax expenses in Nokia Group's Consolidated Income Statements at a long-term effective tax rate of approximately 25%. However, Nokia targets Nokia Group's cash tax obligations to continue at approximately EUR 250 million annually until Nokia Group's deferred tax assets have been fully utilized. The cash tax amount may vary depending on profit levels in different jurisdictions and the amount of license income potentially subject to withholding tax.
2015 business outlook
- Nokia expects Nokia Networks' net sales to grow on a year-on-year basis for the full year 2015.
- Nokia expects Nokia Networks' non-IFRS operating margin for the full year 2015 to be in-line with Nokia Networks' new long-term non-IFRS operating margin range of 8% to 11%.
- Nokia's outlook for Nokia Networks net sales and non-IFRS operating margin is based on expectations regarding a number of factors, including:
- Competitive industry dynamics;
- Product and regional mix;
- The timing of major network deployments; and
- Expected continued operational improvement.
- Nokia expects HERE's net sales to grow on a year-on-year basis for the full year 2015.
- Nokia expects HERE's non-IFRS operating margin for the full year 2015 to be between 5% and 10%.
- Nokia expects Nokia Technologies' net sales to grow on a year-on-year basis for the full year 2015, excluding potential amounts related to the expected resolution of the arbitration with Samsung.
- Nokia expects Nokia Technologies' non-IFRS operating expenses to increase meaningfully on a year-on-year basis for the full year 2015, related to higher investments in licensing activities, development of licensable technologies, and business enablers including go-to-market capabilities.
Additional financial guidance for 2015
- Nokia expects Nokia Group capital expenditures to be approximately EUR 200 million in 2015, primarily attributable to capital expenditures by Nokia Networks.
- Nokia expects Nokia Group financial income and expenses, including net interest expenses and the impact from changes in foreign exchange rates on certain balance sheet items, to amount to an expense of approximately EUR 160 million in 2015, subject to changes in foreign exchange rates and the level of interest bearing liabilities.
- Nokia expects Group Common Functions non-IFRS operating expenses to be approximately EUR 120 million in 2015.
Go to Barron's Tech Trader Daily, and do a search of "Nokia Ferragu"
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There, everyone feel better?
Good. Sleep tight.....
Nokia Here division teases 'Here for Gear' announcement for tomorrow
Nokia's Here division will announce news tomorrow at 10 AM London time. A picture posted to Nokia's Here Twitter account details a picture with the words, "Here for Gear." Nokia's Here navigation software is installed on Samsung's (SSNLF) new Gear S smartwatch....
Nokia has posted above image on HERE’s Twitter account and it teases “HERE for Gear”. So, while it is not too difficult to guess, we decided to reveal anything about it only tomorrow when HERE team makes the announcements. And, we hear that there is more to reveal and talk about than just “HERE for one Gear”.
So, stay tuned for our coverage tomorrow and the announcements will take place around 10 am London time ( 2.30 am IST)
Direct from Nokia
Capital structure optimization program – FAQ for investors:
As part of the Capital Structure Optimization program announced today we are announcing a plan to execute share buybacks of EUR 1.25 billion over two years.
Provided we receive shareholder authorization, our plan is to commence the repurchases following publication of our Q2 2014 results. We will ask for the authorization to run until December 17, 2015 and expect to seek similar authorization at the 2015 Annual General Meeting.