Pierre1 schreef op 25 oktober 2021 16:27:
Enkele reacties van het Yahoo Finace Nokia forum:
NOKIA ANALYSIS BY BOFA, SOME COMMENTS. Firstly, about the 5G market peaking. Mobile Wireless boss Tommi Uitto said the following in March on its CMD: "5G and Enterprise are driving growth in Mobile Networks. We are still in early stages of the 5G cycle, which has an extended peak". We see that in 2021 we are still far from the peak which may occur about 2025 to continue close to the peak until 2029.Then we'll likely see 6G starting to be adopted. Even when the total 5G market has peaked the private wireless (where Nokia is market leader) will continue growing when operators are already investing less. Anyway, 5G will not end in 2021 and not even start declining in 2025. Check page 9 for the graphics:
www.nokia.com/sites/default/files/202...Secondly, BOFA is forgetting Nokia is far from having reached it's highest possible margins in Mobile Wireless. The SoC proportion will hit 100% in 2022 and only be felt fully on a yearly basis in 2023. Nokia's margins are targeted to hit more than 10% just like Ericsson already does.
Thirdly, Nokia is much more than Mobile Wireless which currently is about 45% of Nokia's sales and 25% of its profits and this is when software was loss-maiking in H1 2021. When Nokia gets it's Cloud and Network Services unit performing as it should Nokia's average operating margin will grow.
To conclude, we can also ask why is the BOFA analysis so much more pessimistic than anyone else's. The are basically saying the other analysts are making a big error recommending people to buy Nokia and Ericsson. Taking into account what I wrote above, I see no reason to revise my opinion that Nokia is seriously undervalued both as seen to this year's expected EPS and as to the performance I expect to see in the years to come.
JPMorgan upgrades Nokia on 'more room to run' for mobile turnaround JPMorgan analyst Sandeep Deshpande last night upgraded Nokia to Overweight from Neutral with a price target of $7.80, up from $4.30. The analyst believes the company's fiscal 2021 guidance increase is "just the start of the upgrade cycle." The turnaround in Nokia's mobile networks gross margin could value the shares between EUR 6 and EUR 8.40, Deshpande tells investors in a research note. The analyst says the mobile network turnaround has "much more room to run.