BofA Lifts Nokia Price Objective on Expectations of 'Strong' Q2 AI Orders
BofA Global Research forecasts Nokia (NOKIA.HE, NOKIA.PA) would see another three-month period of "strong" artificial intelligence-related orders when it releases its second-quarter results on July 23. "We believe AI & Cloud order intake is the key focus. We expect Q2 AI orders to be at least on par with Q1's EUR1bn intake, given significant data center switch orders expected, and given continued strength in optical transport demand. We expect Q2 [Mobile infrastructure] revenue below but EBIT above css on ongoing portfolio pruning/margin improvement," analysts said in a Friday earnings preview note. "We expect momentum in Optical Networks to remain strong as scale-across demand drives Coherent pluggable orders, 800G increases in the mix, Coherent-lite use cases expand, and Nokia's new products ramp." As such, the research firm raised the price objective to 15.60 euros from 14.40 euros, while the buy rating on the stock was reiterated. Revenue forecasts for the Finnish telecommunications equipment company were also lifted by between 1% and 6% for 2026 through 2028, along with higher EPS estimates over the three-year period.
BofA Global Research forecasts Nokia (NOKIA.HE, NOKIA.PA) would see another three-month period of "strong" artificial intelligence-related orders when it releases its second-quarter results on July 23. "We believe AI & Cloud order intake is the key focus.
We expect Q2 AI orders to be at least on par with Q1's EUR1bn intake, given significant data center switch orders expected, and given continued strength in optical transport demand.
We expect Q2 [Mobile infrastructure] revenue below but EBIT above css on ongoing portfolio pruning/margin improvement," analysts said in a Friday earnings preview note. "We expect momentum in Optical Networks to remain strong as scale-across demand drives Coherent pluggable orders, 800G increases in the mix, Coherent-lite use cases expand, and Nokia's new products ramp." As such, the research firm raised the price objective to 15.60 euros from 14.40 euros, while the buy rating on the stock was reiterated.
Revenue forecasts for the Finnish telecommunications equipment company were also lifted by between 1% and 6% for 2026 through 2028, along with higher EPS estimates over the three-year period.