Analyst Note| Mark Cash |
No-moat Nokia announced that it expects to raise 2021 guidance after continued strength in the second quarter. The announcement did not include new targets but said that Nokia has executed good cost control in the first half of 2021 and that a few end markets have provided strength. However, we still expect headwinds in the second half of the year. With higher expectations for revenue and operating margin expansion, we are raising our fair value estimate to EUR 4.60 from EUR 4 (U.S. ADRs increase to $5.40 from $4.80) and view shares as fairly valued.