A survey by 10 Yahoo! analysts found that in 2021 Nokia is predicted to make 34 cents per share. Nokia’s inventory is actually 12.2 times greater (i.e. $4.48, broken by $0.34 is equivalent to 13.2). Also, with forward profits, this makes Nokia stock affordable. One factor observer like invents is that their 5 G telecommunications services offerings are well advanced. Nokia has just announced that it has won 8 5 G offers. According to Barron’s, Raymond James analyst Simon Leopold claims that there will be a stronger business attitude. This would coincide with the advancement of Nokia’s 5 G gear and the level of disruptive technologies.
The analyst highly advises purchasing the stock and predicts a possible return of almost 33 percent, at $5,50 or almost twice as much as today. One reason Leopold likes NYSE: NOK is because of the fact that, as of Sept. 1, the company has a new CEO, PekkaLundmark and a new CEO. In reality, the management centre has shifted. The analyst claims that it is more concentrated and profited from its clients. He believes Nokia has consolidated its purchase of Alcatel-Lucent for the last four years and focused on incorporating it. It took time to specialise and improve the 5 G standard for the company.
What’s next for Nokia
In the FT ‘s opinion, Nokia is “attackable” so it can be activists or takeover bids. The stock market valuation, for example, is largely similar to that of 2013, of 24 billion euros. Such success draws fans who feel that they should do better. Moreover, the owners are hoping for a dividend resumption, as I pointed out above in my previous post. If NYSE: NOK is not repositioned in the 5 G race, the new management could be vulnerable to such takeovers.
The FT report also states that a strategy analysis is carried out by the current CEO. He may wish to sell property because shareholders thought the business is too diluted. The patent and licence division Nokia Technologies is one member. Some observers also think it might be possible to sell their Alcatel submarine division. The organisation still feels its 100,000 workers payroll is too high. Basically, the current CEO will function as though it were under pressure to make radical improvements, almost as if it is faced with a corporate acquisition. So expect the NYSE: NOK that I’ve seen to be profoundly undervalued to happen. It’s worth a minimum of 50% more. You can check more stocks like NASDAQ: MU before stock trading.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.