Nokia (NOK) Stock Higher After Reaching Smartphone Patent License Agreement With LG

NEW YORK (TheStreet) -- Shares of Nokia (NOK) were gaining 2% to $7.15 Tuesday after the Finnish telecommunications company announced it reached a smartphone patent license agreement with LG.

The details of the royalty payment obligations are subject to commercial arbitration which is expected to conclude within one to two years, according to the companies. The other terms of the agreement will remain confidential.

South Korean smartphone maker LG is the first major smartphone manufacturer to join Nokia's licensing program since Nokia sold its Devices & Services division, which was in charge of designing and making the company's handsets, to Microsoft (MSFT) in 2014.

About 5.7 million shares of Nokia were traded by 1:24 p.m. Tuesday, compared to the company's average trading volume of about 28 million shares a day.

TheStreet Ratings team rates NOKIA CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NOKIA CORP (NOK) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels, compelling growth in net income and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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