Nokia Corporation is better known for its range of iconic mobile phones, but its product suite goes far beyond this. Nokia is a Finnish provider of fixed and cloud network solutions, telecommunications services, and information technology products.
Founded in 1865, Nokia was originally a pulp mill producer, evolving into a manufacturer of cables, then telecoms equipment and mobile telephony in the 1990s. The company was a pioneer of GSM handsets and, from 1998 to 2008, was the biggest vendor of smartphones and mobile phones globally. However, it soon lost its market share to Apple and other Android OS brands and was bought over by Microsoft in 2014.
Even though it is back into the mobile telephony business, Nokia is now heavily involved in telecoms infrastructure and technologies based on the Internet of Things (IoT).
The latest Nokia stock news is one that investors would love. The company recently announced a robust revenue outlook for 2022 as its recovery gathered momentum following years of restructuring. The latest revenue projections are for revenues to increase from 22.2 billion euros to between 22.6 billion and 23.8 billion euros. A Refinitiv poll shows that most analysts expect revenue to ramp at 23.06 billion euros.
This is not the only Nokia stock news that should bring cheers to investors. Annual revenues are forecast to exceed projections, with operating margins for the long-term also set at 14%, which is more than its previous 2023 target of 11-13%. The company also said it was restarting quarterly dividends and commencing a share buyback program following upbeat earnings that beat market estimates.
New Nokia CEO Pekka Lundmark is credited with its recent cost-cutting progress, which has enabled it to return to accelerated growth. The latest earnings projections should prompt a bullish Nokia stock forecast 2022 outlook, even as the company says it has essentially caught up with its competitors in the race for 5G deployment.
Will Nokia stock up? There is a lot of optimism from market watchers regarding the Nokia stock projections. The majority of recently-polled analysts agree that there are good prospects for the Nokia stock forecasts, given the latest profit figures (908 million euros versus market consensus of 822 million euros). In addition, the upbeat 2022 projections and the ban on Huawei, which enabled the company to recover some of its lost market share in key growth opportunity markets, are factors expected to drive bullish price projections.
The only downside to this is losing a multi-billion-dollar contract awarded by its long US customer Verizon to South Korean telecoms giant Samsung. Nevertheless, the restarting of dividend payments to the tune of 8 euros per share for 2021 and the buyback of 600 million euros worth of stocks from its investors are also positive fundamentals that could send the Nokia stock price upwards in the short and medium term.
The Nokia stock forecast 2022 is a bullish one, which rides on the back of the latest 2021 guidance by the company that exceeds its previous targets, the 4th quarter earnings that beat estimates, the restart of dividend payments, and the strong imprint the company is making in the deployment of 5G technology.
The weekly chart showcases the price action over several months to years and is a good representation of the medium-term outlook for Nokia. The chart shows that the price has been trending upwards since the pandemic in 2020. From the 16 March 2020 low of 2.083, the stock now trades at 5.019, representing a 140.9% increase.
The price is now seeking to pivot off the middle trendline that connects the recent lows of 20 September 2021 to date. This move will attempt to breach the 5.756 multi-year top. This move must uncap the barrier at 5.322 in the process. If the bulls take out 5.756, the next target in line is the 7 December 2015 low at 6.286. Above this target, the 25 January 2016 high at 6.779 remains achievable for 2022.
However, if the pivot at 4.849 fails to hold, we could see a descent towards 4.526, with 4.340 and 3.980 also lining up as potential downside targets. This outlook would negate the bullish Nokia stock forecast 2022.
The Nokia stock forecast 2025 will depend on the ability of the bulls to take out sequential resistance levels at 6.286 and 6.779. This could provide a good chance for the attainment of sequential Fibonacci extension targets at 8.437, 11.070, and 12.467 (100%, 141.4% and 161.8% Fibonacci extension targets).
However, failure to clear the 6.000, 6.286, and 6.779 resistance barriers could keep the Nokia stock price between a range extending from 3.873 below to 6.738 above.
The Nokia stock forecast 2025 and beyond still tilts towards the bullish side, as the fundamentals favor the company’s growth and its stock price. The ability of the company to win 5G contracts and expand its retail product lines will be the bedrock of the medium-to-long term stock price action.
The progress made by Nokia after more than a decade of extensive restructuring is evident. At slightly above $5, the stock appears to be undervalued. The raised outlook for 2022 could also raise the company’s
free cash flow estimates. Dividend restoration and buyback program has the potential to drive the stock towards a near-term target of $8.50, which is about 42% above the Nokia stock price today. This could make the stock’s current price an attractive entry point for aggressive traders. Conservative investors may prefer to allow prices to retreat a bit more to the identified support pivots below market price before making their entries.
Is Nokia a good stock to buy? For those who want to capture price appreciation based on the 5G rollout across the globe, Nokia may satisfy this interest, but only if it secures key contracts in this regard. If it loses contracts in the scale to that recently lost to Samsung, this will not help the cause of investors seeking medium-term gains.
Nokia Corporation has done well enough to put itself out there as a potential high-flyer in the post-pandemic years. The Nokia stock forecasts appear to be tilted to the bullish end on the back of recent fundamentals backing the stock. The ability to sustain these fundamentals heading into 2025 and beyond will determine if the Nokia stock forecasts continue in the same direction as 2022.
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This post was last modified on Feb 10, 2022, 12:24 GMT 12:24