Nokia stock rating upgraded to Reduce by IndeRes on strong Q3 results

Investing.com's IndeRes upgraded Nokia (NYSE:NOK) to a "Reduce" rating from "Sell," highlighting the company's better-than-anticipated third-quarter performance and more favorable outlook in key areas. Nokia's adjusted EBIT surpassed both analyst estimates and the consensus forecast. Notably, the Finnish telecommunications equipment firm secured substantial orders from AI and cloud customers, according to IndeRes analyst Tommy Saarinen.

The company reported a 7.3% growth in revenue over the past year, with a market capitalization of $46.76 billion. Nokia also projected growth in optical and IP networks for the upcoming year. The heightened order book bolsters the company's earnings projections, IndeRes noted. The firm raised its earnings estimates for Nokia by 6-7% for future years and increased its price target to EUR 7 from EUR 6.5.

According to InvestingPro, Nokia appears slightly undervalued at present prices, trading at $8.14. The platform provides a detailed Pro Research Report on Nokia, among 1,400+ reports that convert intricate data into practical intelligence. IndeRes describes the valuation as having returned to a fair level, although the risk/reward ratio remains modest, according to their analysis.