The analyst firm downgraded the Finnish phone maker to "underperform" from its previous "market perform" due to the stock's current valuation. The firm still sees $7 as a fair price for Nokia's stock. Nokia gained 5.8% in the past month, and a total of 72.7% in the past year. It hit a 52-week high of$8.20 on Jan. 10, 2014.
Recent rumors point to Nokia releasing a phone running a version of Google's (GOOG) Android operating system in the near future. This is despite the company selling its handset division to Microsoft (MSFT) in a deal that is expected to close in the next few months.
TheStreet Ratings team rates NOKIA CORP as a Hold with a ratings score of C. The team has this to say about its recommendation:
"We rate NOKIA CORP (NOK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
Highlights from the analysis by TheStreet Ratings Team goes as follows: