Ahead of the Bell: Baird downgrades Nokia

Baird downgrades Nokia to 'Neutral,' saying shares are fairly valued after run-up

• On 9:04 am EDT, Friday September 11, 2009

NEW YORK (AP) -- Nokia Corp.'s new phones look good, but world's No. 1 cell phone maker is still likely to lose market share in the view of an analyst at Robert W. Baird & Co., who downgraded the company's stock Friday morning.

In premarket trading, the Finnish company's U.S.-listed shares fell 6 cents to $15.11.

Analyst William Power cited a recent rally in the shares -- they've gained $3 in three weeks -- as part of the reason for the cut from "Outperform" to "Neutral." The risk-to-reward ratio is now "fairly balanced," he wrote in a research report. He kept a $15 target price.

New devices revealed at the Nokia World show last hold promise, Power wrote, but competition is fierce, with LG Electronics Inc. and Samsung Electronics Co. taking share in mid-range cell phones and Apple Inc. and Research In Motion Ltd. doing the same in smart phones.

Meanwhile, network investment by carriers remains "muted," affecting Nokia's infrastructure joint venture with Siemens AG, Power wrote.