Norwegian investment bank ABG Sundal Collier is bullish on Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) even as the market slows down its adulation. A new report from the bank puts a price target of €6 on the company’s shares in their home Finnish stock market. According to the analysis, Nokia Siemens NEtworks is the key to the new iteration of the Finnish giant.


There are several problems that the Microsoft Corproation (NASDAQ:MSFT) acquisition of Nokia Corporation (NYSE:NOK) smart phone business may have solved at Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V), according to the analysis. This, and the underlying strength of Nokia Siemens Networks, point to a strong future for the company if the analysis bears out.

Nokia problems solved

The number one issue that the recent acquisition resolved was cash burning. Nokia Corporation (NYSE:NOK) had been burning so much cash that it seemed to be doing its best to go out of business. Now Microsoft Corporation (NASDAQ:MSFT) is feeding that particular fire, and they’ve paid Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) for the privilege. Nokia is fundamentally stronger in the wake of the acquisition than it was before the buyout.

That leaves Nokia Corporation (NYSE:NOK) with a boat-load of cash to spend on new business and a much less restrictive set of accounts. The company is no longer fighting an apocalypse. Nokia has been given great power in the form of billions of dollars. Shareholders expect the company to use it in their interest.

For the analysts at ABG Sundal Collier, Nokia Corporation (NYSE:NOK) has one option that could add a huge amount of value to the company. Nokia Siemens Networks, called Nokia Networks after the company bought out the other half of the giant venture earlier in 2013, may be the future of the company.

Nokia networks

According to the report, Nokia Siemens Network has been mismanaged for years. The ownership structure of the company coupled with the constant peril that Nokia has been in recently have made it cumbersome to manoeuvre strategically. Now that Nokia Corporation (NYSE:NOK) is in complete control, it can make the business valuable.

Nokia Networks is Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) now. The business has the full attention of  management and the confidence of the board. Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) shares are trading at €4.90 right now. If this report bears out, they’re likely to gain quickly over the next year.