Nokia: stay away from stock, New Street Research says

(CercleFinance.com) - New Street Research on Friday advised investors to stay away from Nokia shares after the Finnish telecoms gear maker reported "weak" quarterly results yesterday.


In a note to clients, analyst Pierre Ferragu said he is raising a "red flag" on the numbers, saying that the group's 7-point margin decline in 5 quarters remains a "mystery" to him.

"Price erosion doesn't make sense to us - a concept we had never heard of in this industry”, he wrote in the report, adding that management explanations do not bode well for any sort of "5G mega cycle".

However, at current levels, the stock already prices in a lot of these concerns, the analyst wrote.

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