The last few years haven’t been all that much fun for Nokia (NOK),
or its shareholders, as this telecom equipment company found itself
sandwiched between more aggressive competitors and more conservative
customers, and stuck in a place where customers have scaled back
investments in older network technology but haven’t yet started spending
on 5G. Now, though, the company appears to be just at the starting edge
of a ramp-up in network spending that should drive meaningful cash flow
generation in the coming years.
I don’t believe 5G
will be transformational for Nokia in the sense that the company will
suddenly see breakout revenue growth, but I do believe the company’s
end-to-end solution could drive some share and revenue upside. I also
believe there could be more long-term opportunity in the optical
networking and IP routing businesses from recently-introduced
technologies. Given all of that, I think Nokia is worth considering into
the $6’s.
Read more here:
Nokia On The Edge Of The Ramp
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