Nokia, DigitalC Collaborate to Provide Internet in Cleveland

Telecommunications giant Nokia Corporation (NOK) recently announced that it has joined hands with non-profit organization DigitalC to provide reliable internet connectivity to people in the underserved areas of Cleveland, Ohio.

Following the news, shares of the company declined 2.7% on Monday. Further, the stock slipped slightly to close at $5.33 in extended trade.

The connectivity will be provided by DigitalC by making use of Nokia’s Digital Automation Cloud (DAC) end-to-end private wireless solution. With Nokia’s DAC, DigitalC will be able to provide affordable, reliable and high-speed internet access to thousands of people in Cleveland.

The President of Nokia North America, Ed Cholerton, said, “Leveraging our leading private wireless capabilities, we created the end-to-end Nokia DAC as a complete solution for anyone wanting to provide secure, reliable, high-speed 4G and 5G connectivity where it is most needed. As such we are excited to be a part of this important project, working alongside DigitalC to connect the unconnected and thus improve inclusion in Cleveland.” (See Nokia stock chart on TipRanks)

Two months ago, Societe Generale analyst Aleksander Peterc reiterated a Buy rating on the stock. The analyst, however, raised the price target from €5.30 ($6.22) to €6.60 ($7.76), which implies upside potential of 27.2% from current levels.

Consensus among analysts is a Strong Buy based on 9 Buys and 3 Holds. The average Nokia price target of $7.10 implies upside potential of 32.7% from current levels.

Nokia scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 35.1% over the past year.