Believe it or not, a section of investors still have hopes in Nokia Corporation (NYSE:NOK) (BIT:NOK1V). This bullishness comes as a surprise especially after considering Nokia Corporation (NYSE:NOK) (BIT:NOK1V)’s prolonged poor performance. While some may want to believe that this unexpected slant towards Nokia is driven by fanaticism, it is not the case.
Guided research from ABG Sundal Collier-a research coverage company- suggests that Nokia Corporation (NYSE:NOK) is a buy, although the target price is 2.5 EUROs, Nokia is trading at 2.3 EUROS (not the ADR shares)
ABG’s research goes on to give detailed insights into Microsoft Corporation (NASDAQ:MSFT) (BIT:NOK1V)’s expected direction. You may be wondering where Microsoft Corporation (NASDAQ:MSFT) comes in. Apparently, it is believed that Nokia Corporation (NYSE:NOK)’s much needed comeback is bound to Microsoft Corporation (NASDAQ:MSFT)’s bright future.
Riding On Microsoft’s Back
Insights from the research report suggest that Microsoft Corporation (NASDAQ:MSFT)’s highly anticipated break is tethered around the corner. This positive outlook on Microsoft is motivated by the high expectations placed in Microsoft’s Windows 8 operating system. In addition to that, the report exclaims Microsoft’s bulging finances, highlighting the possibilities traceable to these finances.
While I totally agree with the foresight on Microsoft, I somehow disagree or rather inadmissibly agree with the take on Nokia. Just because the once successful handset maker is Microsoft’s strategic partner, doesn’t necessarily give it a free pass to bask in Microsoft’s imminent glory.
ABG’s research however begs to differ with my standpoint. The research report gives a conclusive inside scoop of Microsoft’s extended possibilities. Just a quick skim through the report reveals that Microsoft’s possibilities are brimming. A reasonably sized section of the report focuses on the Windows 8 operating system and goes on to highlight the opportunities it extends for Microsoft, and how Microsoft’s subsequent success will benefit Nokia, a strategic partner.
To give you an idea of how Microsoft’s performance will improve after Windows 8’s potential reaches the brim, you can take a look at this chart sourced from the research report.
From the chart, it is visibly evident that prospects will go through the roof once the Windows 8 operating system for PC, tablets, and smartphones picks momentum. This possibility, coupled with Microsoft’s strong financial tendon, spells a lot of hope for Microsoft and in my opinion will drive the company into a new realm of operation.
Nokia on the other hand, is a complete foil of Microsoft. It is neck deep in its own problems and I believe that it is going to take more than Microsoft’s success to pull it out of its morass of mediocrity. Just looking at its past activities paints a darker shade of gloom. With regards to smartphones, it aimed for the stars but landed on the moon. Its finances are also not all that impressive, and the possibilities of a huge leap in performance based on Microsoft’s possible success are remote.