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.