Nokia Earnings: Clear Improvement Off of a Trough in Sales, but the Rebound Is Coming Slowly

Nokia is seeing significant improvement in business trends that give us confidence the firm is on a path back to sales growth. While a significant improvement compared to the past few quarters, however, the third-quarter sales decline was still steep. On the plus side, margins improved, and new deal signings were encouraging. We don't think the market is pricing in the improvement we expect, and we see the stock as undervalued relative to our unchanged EUR 5.50 fair value estimate.