Mobile phone giant

Nokia

(NOK) - Get Report

was up 6.3% in early trading after it announced a $230 million network expansion deal with

Fujian Mobile Communications

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, a Chinese communications company. But

Merrill Lynch

downgraded the stock to intermediate-term accumulate from buy.

Goldman Sachs

also downgraded it, to market outperform from its Recommended List. Goldman reduced its earnings estimates and cut its price target to $32 from $45.