Improved visibility dissolves undervaluation
We raise our target price for Nokia to EUR 5.8 (previously EUR 5.6) and reiterate our Buy rating. As we stated in our previous report, the sentiment towards Nokia’s share will turn when investors’ attention turns from assessing the steepness of the slide in the network market to cycle recovery. The outlook for the next few years provided by Nokia in its report offered the visibility into future profit development that considerably removes uncertainty. Our view is that this will result in a relief rally for the share as a result of which Nokia’s current undervaluation dissolves.
Nokia
Nokia is a global telecommunications company. The company offers solutions in IP, broadband, digital health, and cloud-based systems. The customers are found in a broad base of markets and consist of large corporate customers, authorities, and private consumers. The business is established on a global level in all regions. Nokia was founded in 1865 and the head office is located in Esbo, Finland.
Read more on company pageKey Estimate Figures02.02.2018
2017 | 18e | 19e | |
---|---|---|---|
Revenue | 23,148.0 | 22,175.9 | 22,824.3 |
growth-% | -2.06 % | -4.20 % | 2.92 % |
EBIT (adj.) | 2,585.4 | 2,416.1 | 2,945.7 |
EBIT-% (adj.) | 11.17 % | 10.90 % | 12.91 % |
EPS (adj.) | 0.33 | 0.27 | 0.37 |
Dividend | 0.19 | 0.21 | 0.24 |
Dividend % | 4.88 % | 6.06 % | 6.92 % |
P/E (adj.) | 11.86 | 12.62 | 9.33 |
EV/EBITDA | 9.99 | 7.95 | 4.19 |