S&P CAPITAL IQ RAISES OPINION ON ADSS OF NOKIA CORP TO BUY FROM HOLD S&P Capital IQ

SNPMarketScopeResearchNotes2016-02-17 10:19:52.000NOKNOKIA CORPORATIONia Man Neoh, /K. SnyderS&P CAPITAL IQ RAISES OPINION ON ADSS OF NOKIA CORP TO BUY FROM HOLDWe keep our 12-month target price of $7.50, 19.2X our '16 earnings per ADS estimate of $0.39. This represents a slight premium to NOK's 10-year historical forward P/E average of 17.2X as we see the prospect of cost synergies from the takeover of Alcatel-Lucent coupled with proceeds from the sale of HERE outweighing a competitive environment in Networks. We set our '17 earnings per ADS estimate at $0.44. NOK reported Q4 earnings per ADS of $0.17 vs $0.10, 25% above the Capital IQ consensus. We continue to see weakness in NOK's core Network division, which saw sales decline 5%.|US;NOK|7244|FI|215985