Nokia’s (NYSE:NOK) undervaluation: false or otherwise? – Nokia Corp.

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By Thomas Copeland on September 17, 2014 Technology & Software

Nokia Corp. (NYSE:NOK) experienced increases in its stock value by 19 cents putting it at a value of $8.56 following a call by Oppenheimer (MUTF: ODMAX). The basic rise and flow of the company was the price target of $12 which made it clear that Nokia (NYSE:NOK) was to rally over at about 40%.

Nokia (NYSE:NOK) gains its customer loyalty through customization as Google (NASDAQ:GOOGL) follows a more restrictive approach. Oppenheimer (MUTF: ODMAX) thinks that Nokia (NYSE:NOK) may better monetize its International Property Revenue (IPR) as it does not require cross-licensing of its devices. Samsung (KRX: 005930) is predicted to be a part of the circle in 2015 while the Chinese and Apple (NASDAQ:AAPL) will be seen in later years around 2016 or 2017.

Kidron stated that Nokia (NYSE:NOK) is being upgraded so that it may outshine others thus setting a price target of $12. Nokia’s (NYSE:NOK) strategic direction is being followed with strict compliances as it is believed to cause a great rise for the company. Better margins and long term targets are achievable with IPR as well as HERE (mapping) delivering leverage over Samsung (KRX: 005930) and Apple (NASDAQ:AAPL) whilst other Chinese vendors will soon be targeted. Shares are expected to be volatile in the short term as Nokia (NYSE:NOK) emerges as a new brand with a better strategic direction. Kidron says that he is sure about the longer term view of the company as it will give them solid results and an overall betterment of the firm will take place. Analysts are predicting an increase resulting in an upside of $18.

Oppenheimer (MUTF: ODMAX) values this by referring to different analysts statements. He says that the base line valuation with reference to $10 of Nokia will prove positive thus making it $18 only if the company can monetize the IP portfolio value successfully. He continues to say that the $12 price target seems to be around the lower end in the SOP analysis results.

Nokia (NYSE:NOK) is carrying out its strict procedures extremely well as it is reaping better profits than expected with both the IPR and HERE which are causing its success to be expected in 2015. One other thing that cannot be missed out is that the cash flows are being protected by tax credits which are in turn causing high returns.

Oppenheimer’s (MUTF:ODMAX) estimates that the 2014 earnings will have a revenue of $16.7 billion with $0.34/share, and 2015 will have a revenue of $17.3 billion with earnings making it to $0.39/share.

Nokia’s (NYSE:NOK) shares brought in profits this Tuesday later to Oppenheimer’s (MUTF: ODMAX) upgrade on Monday and this did not seem unusual with predictions beforehand. On trading day, it took 35 minutes to bring the stock down at $8.45 by 1.3% alongside $6.22 to $8.63 at a 52-week period. Thus concluding findings, we say that the consensus price target is not nearer to $9 with the high target at $12 as well. Thus the upgrade definitely came in handy!