NEW YORK (TheStreet) -- Shares of Nokia (NOK) are gaining 0.55% to $7.34 on Tuesday after analysts at Canaccord Genuity reiterated a "buy" rating and a $10 price target on the stock today, Barron's reports.
Despite softer network profits in the first quarter, analysts expect the business to improve steadily through the second half of the year, according to Barron's.
Analysts see improvement in the company's technology business, stating that "the recent LG Electronics (LPL) arbitration agreement ahead of the Samsung (SSNLF) arbitration sets Nokia up for long-term growth and will create precedent for other leading original equipment manufacturers to utilize arbitration after the expiration of current deals."
Additionally, Nokia's $16.6 billion acquisition of smaller telecom equipment maker Alcatel-Lucent (ALU) in April adds to their bullish outlook, analysts said.
Separately, Nokia's mapping and location business HERE today published an interface specification that defines how sensor data gathered by vehicles on the road can be ingested by a cloud, leading them one step closer to developing live map for cars.
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 multiple 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."