The article was written by Motek Moyen ResearchSeeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.
Summary
I reiterate the buy rating I gave Nokia’s stock last May 11. The stock has since risen +20% but I’m highly confident it still has more upside potential.
Recent 5G contract wins convinced me that NOK deserves a 1-year price target of $5.30.
NOK’s 1-month price return is +17.34%. This is thanks to the new U.S. sanctions against Huawei. Going forward, I expect this stock to have a YTD gain of +30% or more.
Analysis of weekly technical indicators and recent moving averages produced a buy endorsement for Nokia’s stock.
Cloud computing giants Tencent and Baidu recently chose Nokia as their supplier for optical data center interconnect or DCI networks.
The article was written by Motek Moyen ResearchSeeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.
Summary:
The COVID-19 pandemic has delayed the onset of the global 5G revolution. We should still bet on companies involved in the 5G infrastructure rollout business.
In spite of this pandemic, the 5G infrastructure industry is still growing at an estimated 51.01% CAGR. This niche market is expected to be worth $22.93 billion by 2025.
It is therefore judicious to go long on Nokia. Nokia is still the world’s no.2 vendor of telecom equipment products (3G, 4G, and 5G).
Nokia’s stock has a one-year price return of -28.11%. NOK is now very affordable to own. It trades at only 0.80x Price/Sales valuation. NOK’s forward P/E is just 11. 44x.
I Know First has a slightly bullish one-year outlook for Nokia’s stock. The deteriorating US-China relationship is a long-term tailwind for NOK.
Increasing revenue via signing rewarding royalty contracts with major mobile phone companies.
Partnership with India’s largest mobile phone manufacturer.
All set on re-entering the mobile phone manufacturing market in 2016.
Analysts are confidently predicting NOK's share to rise.
I Know First’s algorithm is bullish on Nokia.
I Know First's algorithmic analysis echoes the bullish stance of the fundamental analysis - particularly in the long-run. Both set of analyses indicate that there is currently a profitable opportunity for investors with long-term strategies who could see a phoenix-esque return of Nokia.
Nokia Corporation (NYSE:NOK) stock price has increased by 67.69% since I Know First published a bullish article for the company on Seeking Alpha. The article predicted that even though today's Nokia will be far different from yesterday's, Nokia shows great promise to become a major player in the telecommunications equipment industry.
At this point in time, Nokia Corporation (NOK) is a company worth considering opening a position in. The stock price has fallen 8.5% since its earnings report, and is down 12.7% year-to-date. The decreased stock price is a result of a decline in operating profit in the Networks core division, which fell 61% from a year earlier, and concerns about the company’s proposed acquisition of Alcatel-Lucent (ALU). However, the Networks division will turn around during the rest of the year and the company’s planned sale of HERE, its mapping unit, will help the company’s performance and make the stock bullish in the long-term.
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