Nokia: lost confidence – massive downgrade of the share

In the third quarter, sales at Nokia fell by 3 percent to 5.29 billion euros. The consensus was 5.42 billion euros. The analysts at DZ Bank call the presented figures mixed.

With the numbers, the Finns reduce their forecast. An operating margin of 8.5 percent to 9.5 percent is now expected for 2020. The old forecast was 8.0 percent to 11.0 percent. Earnings per share should be between EUR 0.20 and EUR 0.26. In the previous forecast, the range was up to 0.30 euros. In 2021 there should be a margin of 7.0 percent to 10.0 percent. The market had expected 10.2 percent. This worries some observers. In addition, Nokia is withdrawing its medium-term goals. There should be new targets for the Market Day on March 18, 2021. Apparently there is still no agreement internally.

The analysts have downgraded Nokia shares from “buy” to “sell” after these operations. The price target drops from 4.20 euros to 2.50 euros.

They see earnings per share at EUR 0.21 in 2020 (old: EUR 0.25). In 2021 there should be earnings per share of EUR 0.18 (previously: EUR 0.30).

With the new statements and forecasts, Nokia has lost a lot of confidence. The market is reacting clearly, the course is on the downside. The paper lost 15.8 percent to 2.917 euros.

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