Overview of Nokia's Stock Upgrade#
Argus has upgraded Nokia's stock rating from Hold to Buy, setting a new price target of $15. Currently, Nokia's stock trades at approximately $10.46, close to its 52-week high of $10.90. This increase follows an impressive 114% gain in the past year.
Earnings Performance#
The upgrade comes after Nokia reported its first-quarter 2026 earnings, where its non-IFRS earnings per share (EPS) surpassed analysts' expectations. Non-IFRS EPS is a measure that excludes certain costs to give a clearer picture of a company's profitability. However, Nokia's revenue fell short of projections, coming in at EUR4.49 billion, compared to the expected EUR5.32 billion. Despite this, there was a year-over-year revenue growth of 4% when adjusted for currency and portfolio changes.
AI Demand and Future Outlook#
Nokia is experiencing increased demand driven by investments in artificial intelligence (AI), particularly in its Network Infrastructure segment. The company has raised its revenue growth guidance for this segment for 2026. Meanwhile, the Mobile Networks sector remains stable, with potential growth anticipated to support AI data center traffic.
Analyst Insights#
Jim Kelleher, an analyst at Argus, has set the $15 price target for Nokia, maintaining a long-term Buy rating. Current analyst targets for the stock range from $7.60 to $15. However, some analyses suggest that the stock may be overvalued at its current price. Investors looking for more detailed insights can access Nokia's comprehensive Pro Research Report, which provides in-depth analysis and data.
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