Nokia Corporation (NOK) inked a deal with its long-term partner Taiwan Star Telecom (TST) to expand its 5G network in Taiwan.
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Shares of the multinational telecom, information technology, and consumer electronics company have gained 28% over the past year. (See Nokia stock charts on TipRanks)
Per the agreement, Nokia will provide support to TST’s 5G standalone network by adding equipment from its latest 5G AirScale portfolio. The collaboration is expected to enhance deployment and improve coverage and performance for TST’s 5G subscribers.
Tommi Uitto, President of Mobile Networks at Nokia, commented, “We are delighted to continue our journey with Taiwan Star Telecom as their 5G vendor. This is an important project that will see us support their expanded delivery of 5G services to even more areas across the country.”
Last week, the company said it will provide its raised full-year 2021 guidance on July 29, along with its second-quarter earnings announcement.
After the expected guidance raise announcement, J.P. Morgan analyst Varun Rajwanshi upgraded Nokia from Hold to Buy and increased the price target from $5.88 to $7.80 (37.3% upside potential).
Rajwanshi said that the guidance is “just the start of the upgrade cycle, driven by upside to mobile network gross margin.”
He further added, “investors should position for the upgrade cycle that is likely to continue to play out over the next 12 months, with 30% upside implied from our new €6.5 PT.”
Overall, the stock has a Moderate Buy consensus rating based on 9 Buys and 4 Holds. The average Nokia price target of $6.27 implies 10.4% upside potential to current levels.
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