In a recent report compiled and published by Goldman Sachs, Nokia Corporation (NYSE:NOK) (BIT:NOK1V) has been portrayed as a sell. The report gives a sneak peek of Goldman Sachs’ meeting with Nokia’s CFO, during a CFO investors meeting in London. Goldman’s sell recommendation adds on to a series of past similar recommendations by the investment bank and other analytical firms.

Nokia

This trend begs the question ‘Why aren’t analytical firms reversing their sell recommendation on Nokia?’

While Goldman Sachs Group, Inc. (NYSE:GS) has highlighted some of Nokia Corporation (NYSE:NOK) (BIT:NOK1V)’s recent achievements, like the Lumia launch, it still believes that the recovery story is far from over. Similarly, Goldman Sachs is not confident in the competitive dynamics of Nokia’s feature phones. These two worries give Goldman Sachs reason to believe that Nokia Corporation (NYSE:NOK) (BIT:NOK1V)’s slackening sales will continue. Likewise, Goldman Sachs is inclined to believe that the cash burn will stretch into fiscal 2014.

Of late, there has been thickening speculation that the company will push through with a break-up to crystallize additional equity value. The meeting with the Nokia Corporation (NYSE:NOK) (BIT:NOK1V) CFO did not, however, yield any indications of a break-up in the near future.

While the long haul seemingly appears to be dim, Goldman Sachs notes that the launch of Microsoft’s Windows 8 this week will provide some significant tailwind to Nokia’s Lumia series. Consumers are highly anticipating the Windows 8 operating system. As we noted on Monday, Bill Gates revealed that the Windows 8 would create a seamless platform for users on different devices. This presents a lot of possibilities for the Lumia, as there is a chance that it will be pulled into the Windows 8 hype.

In the meantime, an alternate report from Bank of America Merrill Lynch has detailed Nokia’s €750 million (around $972.6 million) completion of convertible bonds. The report indicates that there is confidence in the way the company is actively addressing liquidity worries ahead of 2014. Nonetheless, the long haul still seems uncertain.

Amid these reports, Nokia’s Board of Directors’ decision to issue shares owned by the company has been implemented. 1363 Nokia shares owned by the company were, on Wednesday, transferred to participants of the company’s equity based incentive plans.

Nokia Corporation (NYSE:NOK) (BIT:NOK1V)’s much needed turnaround continues to prove elusive, as competition from bigger smartphone companies, like Apple and Samsung, continues to mount. In a move geared towards tightening up on costs, the company noted at the beginning of the month that it was likely to sell its Espoo, Finland headquarters.

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