Shares of Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) edged upward as much was 2% at the New York Stock Exchange after Credit Suisse analysts announced that they added it to a couple of their key lists.
Credit Suisse likes Nokia
They note that their target price suggests a 23% upside to the company’s stock and called it a new equity story rooted in robust growth at the bottom line as well as margin expansion. The Credit Suisse team also sees “material cash distribution” ahead for Nokia.
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The analysts now see Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) as one of their best investment ideas and have reiterated their Outperform rating and €7 per share price target on the stock.
Nokia supposedly still on track with Microsoft deal
Meanwhile, Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) still has plans to close the sale of its devices division to Microsoft Corporation (NASDAQ:MSFT) by the end of the month. However, spats in India and China could delay it. Nokia continues to battle Indian officials for the release of its assets there, which were supposed to be part of the deal.
In addition, the Chinese website Sina reports that the Ministry of Commerce in China is reviewing Microsoft Corporation (NASDAQ:MSFT)’s offer to take over the handset division. The antitrust arm reportedly heard the case this week, and competitors offered arguments against the deal. Companies which make Android handsets argued that the deal could result in higher licensing fees. They also wanted Microsoft to restrict the licensing fees it charges on Android devices.
Google, Samsung express worries about Nokia
Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) will still keep the lion’s share of its patents after selling the devices division to Microsoft Corporation (NASDAQ:MSFT). At the hearing in China, companies echoed concerns already voiced in Europe: that Nokia would begin exhibiting patent troll-like behavior. Not only will the company probably spend more tie pursing mobile phone makers for patent violations because it is no longer in the handset making business, but it will probably try to raise its licensing fees.
Google Inc. (NASDAQ:GOOG) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) have been said to be siding with smaller mobile phone makers against the deal between Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) and Microsoft Corporation (NASDAQ:MSFT).