Nokia Oyj ADR
NOK: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$3.00 | Nnpkb | Dzzhwyts |
Nokia: Acquisition of Infinera Is a Smart Use of Capital
The agreement to acquire optical network solutions provider Infinera should lead to a beneficial increase in Nokia’s optical solutions scale and offers the opportunity for material cost savings. Nokia has been piling up cash while seeing its stock flounder amid a lull in wireless and wireline network spending in most geographies over the past year and a half. We think this is a good use of capital, and we continue to believe the shares are undervalued, as we are maintaining our EUR 5.50 fair value estimate.