Thursday, August 16, 2018

Nokia On The Edge Of The Ramp

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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