Shares of cellular phone giant Nokia Corp. (NOK) were sharply lower following the company's announcement of 2000 sales. Nokia said it sold more than 128M mobile phones in 2000, up 64% from 1999. AG Edwards analyst David Heger thinks the market is overreacting.
Heger told S&P MarketScope that the markets have been too aggressive regarding unit and volume expectations for Nokia. He says some investors expected higher unit sales from the Finnish company, reading a shortfall into the announcement. But he says management is not changing its revenue and EPS expectations. Heger notes the company established a strong growth outlook in September at a meeting with analysts. He maintains his $0.19 Q4 and $0.87 2001 EPS estimates. The analyst also has a $57 12-18 month price target on the shares, which he rates buy.