Stock of the Day

September 16, 2021

Nokia Oyj (NOK)

$4.94
-$0.06 (-1.1%)
Market Cap: $27.21B

About Nokia Oyj

Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments: Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies. The company provides fixed networking solutions, such as fiber and copper-based access infrastructure, in-home Wi-Fi solutions, and cloud and virtualization services; IP networking solutions, including IP access, aggregation, and edge and core routing for residential, mobile, enterprise and cloud applications; optical networks solutions that provides optical transport networks for metro, regional, and long-haul applications, and subsea applications; and submarine networks for undersea cable transmission. It serves its products and services to communications service providers, webscales and hyperscalers, digital industries, and government. The company also offers mobile technology products and services for radio access networks and microwave radio links for transport networks, network management solutions, as well as network planning, optimization, network deployment, and technical support services. In addition, it offers cloud and network services, including core network solutions, such as voice and packet core; business applications, such as security, automation, and monetization; cloud and cognitive services; and enterprise solutions, including private wireless and industrial automation. Further, the company licenses intellectual property, including patents, technologies, and the Nokia brand. Nokia Oyj was founded in 1865 and is headquartered in Espoo, Finland.

Nokia Oyj Bull Case

Here are some ways that investors could benefit from investing in Nokia Oyj:

  • Nokia Oyj has recently been upgraded to a "strong-buy" rating by analysts, indicating strong confidence in the company's future performance.
  • The stock price is currently at $4.69, reflecting a 1.6% increase, which suggests positive market sentiment and potential for further growth.
  • Analysts have set a consensus price target of $5.86, which is significantly higher than the current stock price, indicating potential upside for investors.
  • The company has a solid market capitalization of $25.55 billion, which provides stability and resources for growth initiatives.
  • Nokia Oyj's diverse operations across mobile, fixed, and cloud network solutions position it well to capitalize on the growing demand for advanced telecommunications infrastructure.

Nokia Oyj Bear Case

Investors should be bearish about investing in Nokia Oyj for these reasons:

  • The payout ratio is 112.50%, which indicates that the company is paying out more in dividends than it earns, raising concerns about sustainability.
  • Goldman Sachs recently downgraded Nokia Oyj from a "neutral" rating to a "sell" rating, suggesting a lack of confidence in the stock's short-term performance.
  • Despite recent upgrades, one analyst has issued a sell rating, highlighting potential risks that could affect investor sentiment.
  • The company's debt-to-equity ratio is relatively low at 0.14, which is generally positive, but it may limit its ability to leverage debt for growth opportunities.
  • Nokia Oyj's stock has a high price-to-earnings ratio of 58.58, which may indicate that the stock is overvalued compared to its earnings, posing a risk for investors.

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