JP Morgan Upgrades Nokia to 'Market Perform'

Analyst Ed Snyder says market has already discounted the wireless phone maker's challenges

JP Morgan upgraded Nokia NOK to market perform from underperform.

Analyst Ed Snyder says Nokia still faces big challenges from a sluggish replacement cycle; structural changes in the wireless services market; and aggressive, low cost handset makers. However, he thinks the price now already is discounting the worst of a low growth environment and the impact of commoditisation on margins.

Snyder still thinks Nokia's core strengths: management, a flexible balance sheet, product capabilities, superior supply side economics, and its technological focus remain intact. He sees $0.71 2003 earnings per share, and cut the $15 target to $13, but says potential catalysts could put Nokia into the $15-$17 range.

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