Nokia: stock slides after Credit Suisse downgrade
(CercleFinance.com) - Mounting issues at Nokia have prompted an influential broker to downgrade its rating on the Finnish telecom gear maker's stock on Tuesday, which has sent its shares down almost 3%.
Credit Suisse analysts downgraded Nokia from "outperform" to "neutral," citing near-term caution on sales and caution on margins in 2020.
"While our thesis on 5G remains intact (gradual growth, longer cycle with improving industry margins), Nokia's issues around 5G - first delayed product launch and now high cost structure and increased investments -may lead to sustained share loss and limited margin expansion over the next 12-24 months," it said.
Credit Suisse has also cut its target price for the stock from 5.70 euros to 3.85 euros.
Nokia shares were down 2.8% at 3.2 euros following this downgrade.
Copyright (c) 2019 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.
Credit Suisse analysts downgraded Nokia from "outperform" to "neutral," citing near-term caution on sales and caution on margins in 2020.
"While our thesis on 5G remains intact (gradual growth, longer cycle with improving industry margins), Nokia's issues around 5G - first delayed product launch and now high cost structure and increased investments -may lead to sustained share loss and limited margin expansion over the next 12-24 months," it said.
Credit Suisse has also cut its target price for the stock from 5.70 euros to 3.85 euros.
Nokia shares were down 2.8% at 3.2 euros following this downgrade.
Copyright (c) 2019 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.