Time to Buy Nokia (NOK)?
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Nokia may be a value play, and here are a few reasons for and against that argument.
Nokia was slammed after announcing a deal with Microsoft (Nasdaq: MSFT) in February. The deal, announced two-days after Nokia hit it's high for 2011, has sent shares falling over 52 percent since then.
We even griped about Nokia's choice only last month, and Nokia reinforced those fears with lackluster second-quarter results at the end of July, though its outlook seemed to have struck a chord with investors.
Still, things may be looking up for Nokia.
Nokia is expected to launch its N9 in September, according to a countdown clock on its website. The device will be the first from Nokia to utilize the MeeGo platform, expected to be a formidable rival to Android. Discussions around this point will be far from over, though its interesting that MeeGo would be included in lieu of Windows.
But not that Windows phone is a sham. The Mango upgrade will bring over 500 new features to the OS. With Android becoming the most popular OS on the U.S. market today, consumers might be garnering for another system to separate themselves from the crowd.
Finally, recent data from IDC shows Nokia's global smartphone market share fell to 15.7 percent, placing it in third behind Apple (Nasdaq: AAPL) and Samsung. This may be good news for Nokia fans, as the pressure to keep the top-spot in the segment has lifted, and potentially its share price with it.
Looking at data from Streetinsider's Ratings Insider, four analysts have a Buy rating on Nokia, nine are at Hold, and eight retain a Sell rating. The Street's price target average is about $7 per share, with a low of $5 and a high of $10.
Overall, though there are plenty of ways for Nokia to slide a little further lower, this is no Research In Motion (Nasdaq: RIMM) stock. Management in Stephen Elop is solid, though he might have a slight bias toward Microsoft, most recently working there as head of Microsoft Office. Nokia generally can come up with a few product offerings to catch attention, it's still a global leader in overall mobile unit sales. With shares trading at $5.25 on the NYSE, analyst price targets look a little bullish, too. In the near-term, there still may be some weakness as Android and iOS continue to rule, but for a long-term investor Nokia might be a good tech play.
Shares are up over 4 percent on the session Friday.
(Note: The writer doesn't hold a position in Nokia.)
Nokia was slammed after announcing a deal with Microsoft (Nasdaq: MSFT) in February. The deal, announced two-days after Nokia hit it's high for 2011, has sent shares falling over 52 percent since then.
We even griped about Nokia's choice only last month, and Nokia reinforced those fears with lackluster second-quarter results at the end of July, though its outlook seemed to have struck a chord with investors.
Still, things may be looking up for Nokia.
Nokia is expected to launch its N9 in September, according to a countdown clock on its website. The device will be the first from Nokia to utilize the MeeGo platform, expected to be a formidable rival to Android. Discussions around this point will be far from over, though its interesting that MeeGo would be included in lieu of Windows.
But not that Windows phone is a sham. The Mango upgrade will bring over 500 new features to the OS. With Android becoming the most popular OS on the U.S. market today, consumers might be garnering for another system to separate themselves from the crowd.
Finally, recent data from IDC shows Nokia's global smartphone market share fell to 15.7 percent, placing it in third behind Apple (Nasdaq: AAPL) and Samsung. This may be good news for Nokia fans, as the pressure to keep the top-spot in the segment has lifted, and potentially its share price with it.
Looking at data from Streetinsider's Ratings Insider, four analysts have a Buy rating on Nokia, nine are at Hold, and eight retain a Sell rating. The Street's price target average is about $7 per share, with a low of $5 and a high of $10.
Overall, though there are plenty of ways for Nokia to slide a little further lower, this is no Research In Motion (Nasdaq: RIMM) stock. Management in Stephen Elop is solid, though he might have a slight bias toward Microsoft, most recently working there as head of Microsoft Office. Nokia generally can come up with a few product offerings to catch attention, it's still a global leader in overall mobile unit sales. With shares trading at $5.25 on the NYSE, analyst price targets look a little bullish, too. In the near-term, there still may be some weakness as Android and iOS continue to rule, but for a long-term investor Nokia might be a good tech play.
Shares are up over 4 percent on the session Friday.
(Note: The writer doesn't hold a position in Nokia.)
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