{
  "id": 8779774,
  "title": "Nokia (NOK) Gets a Buy Rating, But Q2 Operating Loss Raises Questions",
  "url": "https://urgent.news/2026/09/20/nokia-nok-gets-a-buy-rating-but-q2-operating-loss-raises-questions",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-20T21:45:09.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/nokia-nok-gets-buy-rating-214509281.html"
  },
  "original_language": "en",
  "account": "On September 17, B. Riley raised their rating on Nokia Oyj (NYSE:NOK) to a Buy and set a price target of $15. The firm highlighted Nokia's presence in telecom infrastructure, cloud software, and hardware networking solutions, noting strong growth in their networking businesses. In Q2 2026, Optical Networks revenue rose 20% year-over-year, while IP Networks grew 16%. Sales to AI and cloud customers surged 105%. Nokia's AI networking products are in high demand among hyperscalers for supporting large-scale computing clusters. The company reported EUR 2.8 billion in AI and cloud order intake during Q2 2026, providing visibility into revenues for 2027. B. Riley also highlighted that the carrier inventory correction cycle, which had impacted global capital expenditures, has concluded. The firm used a sum-of-the-parts valuation, separating Nokia's legacy assets from its data center business and applying a premium hardware multiple to the latter. However, Nokia reported a EUR 50 million operating loss in Q2 2026, with operating margin declining to negative 1% from 3.3%. The decline was attributed to accelerated restructuring. Nokia's free cash flow was also negative at EUR 732 million in Q2. The company expects total related charges of EUR 800 million in 2026 due to restructuring efforts. Despite strong demand from AI and cloud customers, Nokia faces a near-term financial burden from these charges. Hedge fund interest in Nokia has increased, with 81 hedge funds holding the stock at the end of Q2, up from 66 in Q1. Short interest remained relatively low at 1.04% of shares outstanding. Of the 31 analysts covering Nokia, 61% rate the stock a Buy, with a median 12-month price target of $13.33, indicating a potential 24.84% upside from its current price. Nokia's investment case hinges on whether its AI and cloud business can generate stronger financial performance.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}