NOK Should I Buy
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Nokia is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is experiencing a pre-market decline of -3.02%, and technical indicators, while mixed, do not strongly support a bullish trend. Additionally, recent analyst downgrades and a lack of significant positive catalysts suggest that holding off on a purchase may be prudent until more favorable conditions emerge.
The stock's MACD is negative and expanding downward, indicating bearish momentum. RSI is neutral at 54.05, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support is at 7.998, and resistance is at 8.694. However, the pre-market price decline of -3.02% suggests short-term weakness.
Nokia's partnership with Nvidia positions it well for growth in the AI-powered 6G market, which is projected to grow at 29% annually. Additionally, the company is involved in collaborative projects with major players like Cisco and AT&T.
Recent analyst downgrades from multiple firms, including SEB Equities, Arete, and DNB Carnegie, reflect a cautious outlook. Financial performance in Q4 2025 showed a significant decline in net income (-27.86% YoY) and EPS (-31.25% YoY), raising concerns about profitability.
In Q4 2025, revenue grew by 11.72% YoY to $7.13 billion, but net income dropped by 27.86% YoY to $630.9 million. EPS also declined by 31.25% YoY to $0.11, and gross margin fell to 44.96%, down 2.56% YoY.
Recent analyst activity shows a mixed to negative trend. SEB Equities downgraded the stock to Hold with a EUR 7.40 price target, and Arete downgraded it to Neutral. However, Morgan Stanley raised its price target to EUR 8.50 and maintained an Overweight rating, providing a slight positive note.
