Nokia Oyj
1NOKIA: XMIL (ITA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€8.70 | Mbcqr | Rcqqlmzf |
Nokia Is Set to Grow With the 5G Wave but Isn’t Moaty
Business Strategy and Outlook
Nokia is a primary provider of telecommunication hardware, software, and services to communication service providers. CSP equipment spending provides robust growth during generational wireless upgrade cycles followed by spending lulls, with 5G being the latest tailwind. 5G's promise of connecting billions of wireless devices at incredible speed across more spectrum bands, along with more use cases than 4G, may offer Nokia more upside than previous wireless generations. However, we do not view Nokia's core market as moat supportive because CSPs typically multisource equipment and possess purchasing power over their vendors.