Nokia drops after Goldman downgrade citing Samsung competitors
Analysts Alexander Duval and Hameed Awan wrote in a notice that Nokia faces draw back dangers amid growing competitors from Swedish rival Ericsson and South Korean tech large Samsung.
Nokia shares have outperformed the broader European tech sector by roughly 2 p.c over the previous 6 months, as buyers hoped the rollout of latest 5G wi-fi networks would enhance the Finnish agency’s revenues. The Goldman analysts mentioned buyers is likely to be too optimistic about Nokia given the corporate‘s personal projections for a sluggish begin to the yr.
“We consider there’s scope for additional draw back to consensus, as our new estimates now consider decrease community revenues, a extra conservative margin trajectory and extra muted progress within the extremely worthwhile patents enterprise,” the analysts mentioned.