Last Updated: 16 Sep 2024
Executive Summary
Nokia Corp ADR (NOK) is a leading global provider of fixed and mobile network solutions. The company has a strong financial position with a market capitalization of $22.9 billion and an EBITDA of $2.85 billion. Nokia's trailing P/E ratio of 22.11 is slightly above the industry average, but its forward P/E ratio of 12.35 is attractive. The company's analyst target price of $4.83 implies a potential upside of 14.8%.
Company Overview
Nokia is headquartered in Espoo, Finland, and has operations in over 130 countries. The company offers a wide range of products and services, including mobile networks, fixed networks, and cloud computing solutions. Nokia's customers include telecom operators, enterprises, and governments.
Fundamental Analysis
Nokia's financial performance has been mixed in recent years. The company's revenue has declined slightly in recent quarters, but its profitability has improved. Nokia's gross profit margin has increased from 48.2% in 2021 to 51.2% in 2022. The company's operating margin has also improved from 5.7% in 2021 to 7.6% in 2022.
Nokia's balance sheet is strong. The company has $5.5 billion in cash and equivalents and $1.5 billion in debt. Nokia's debt-to-equity ratio of 0.27 is below the industry average.
Technical Analysis
Nokia's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 55, which indicates that the stock is not overbought or oversold.
Short Term Outlook
Nokia's stock price is expected to continue to trend higher in the short term. The company's strong financial performance and positive analyst sentiment are likely to support the stock price. Nokia's stock price could reach $4.50 by the end of the year.
Long Term Outlook
Nokia's long-term outlook is positive. The company is well-positioned to benefit from the growing demand for mobile and fixed network solutions. Nokia's investments in 5G and cloud computing are expected to drive growth in the coming years. Nokia's stock price could reach $6.00 by the end of 2025.
Analyst Recommendations
Analysts are generally positive on Nokia's stock. Three analysts have a buy rating on the stock, and six analysts have a hold rating. No analysts have a sell rating on the stock. The average analyst target price is $4.83.
