Nokia: Oddo maintains buy rating; notes 'ambitious' guidance
(CercleFinance.com) - After publishing quarterly sales that it describes as "correct," an analyst at Oddo BHF today says that he is maintaining his “buy” rating on the Nokia stock, with a target price of 5.
80 euros.
However, Oddo BHF wonders about the broker's Q4 guidance for its "Networks" division, which it considers as "ambitious".
The broker says that this publication, which is fairly good, has showed an improvement in the operating margin of Nokia's Networks division (5% after 1% in Q1 and 1.5% in Q2), although this is not enough, in its opinion, to reduce the fear that the group will not be able to achieve its operating margin target of 6% to 9%. At its conference call, Nokia also indicated that reaching this guidance was subject to an execution risk and in particular to matters of project timing and the shortage of components (which will be less extensive, although which will persist for some time).
Oddo considers that reaching the lower limit would be good news, although this requires a sharp rebound in sales and margins in Q4.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
80 euros.
However, Oddo BHF wonders about the broker's Q4 guidance for its "Networks" division, which it considers as "ambitious".
The broker says that this publication, which is fairly good, has showed an improvement in the operating margin of Nokia's Networks division (5% after 1% in Q1 and 1.5% in Q2), although this is not enough, in its opinion, to reduce the fear that the group will not be able to achieve its operating margin target of 6% to 9%. At its conference call, Nokia also indicated that reaching this guidance was subject to an execution risk and in particular to matters of project timing and the shortage of components (which will be less extensive, although which will persist for some time).
Oddo considers that reaching the lower limit would be good news, although this requires a sharp rebound in sales and margins in Q4.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.