Raymond James analyst Simon Leopold said that expectations for Nokia's Technology and Networks units sales growth are too high.
Leopold wrote that the analyst firm's model for Nokia's Technology unit "reflects over 10% sales growth to 650 million euros in 2015. We also reflect operating margin contraction to 56% from 65% in 2014 based on management's commentary regarding increasing investment in the unit."
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The analyst wrote that Nokia's Networks unit could encounter issues due to "the challenges presented by Sprint (S) , which we think was Nokia's largest customer in 3Q14." The firm "reduced our growth assumption for the unit to 0.7% from 2.5% previously."
Separately, TheStreet Ratings team rates NOKIA CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their 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 impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year."