Zacks Investment Research upgraded shares of Nokia Corporation (NOK) from UNDERPERFORM to NEUTRAL on June 20, 2012, with a target price of $2.75.
We are upgrading our recommendation on Nokia Corp. to Neutral, solely based on its extremely low current valuation, which plunged nearly 66% in the last year. We believe at this stage, further downslide of the stock price is a remote possibility. Meanwhile, Nokia remains in dire strait as management has recently forecasted worse-than-expected financial results for the ensuing second quarter of 2012 and opted for another 10,000 headcount reduction. For the first time in last 14 years, Nokia lost its global market leadership position in the overall mobile phone industry to Samsung. Almost a year ago, Nokia lost its crowning glory in the smartphone segment. We remain very much skeptical regarding the success of the Nokia-Microsoft mobile venture. All the three major credit rating agencies of the world, e.g., S&P, Moody's, and Fitch have downgraded Nokia to junk category with a negative outlook.
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