The firm also upped its price target on the telecommunications stock to $6.25 from $5.25.
The decline in Nokia's stock is overdone and most of the bad news is behind the Finland-based company, CLSA wrote in a note to investors cited by CNBC.com.
"If you are looking for revenue growth, stop reading. But if you're looking for a bombed-out stock with a reasonable valuation, solid management, strong balance sheet, a lot of bad news behind it, and significant optionality, read on," the firm said.
Additionally, CLSA sees greater potential for Nokia's 2017 and 2018 earnings upgrades as its synergy story unfolds.
The firm is also constructive on Nokia's "above 7%" 2016 networks margin outlook, the Fly noted.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
However, the team also finds weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: NOK