Nokia post announcement of its Devices and services division deal is getting some love from investors and the share price have seen good upward movement. Now, even analysts are showing lots of faith in upward potential of the company. BofA / Merrill lynch has added Nokia to its “Most Preferred Tech Shares” list. They are seeing a slew of positive catalysts for Nokia moving forward.
The stub (Nokia stock) appears inexpensive following Nokia’s agreement to sell its Devices & Services unit to Microsoft (Nasdaq: MSFT) last month, BAML said. The stub is currently trading for 0.75- and 0.67-times FY14 and FY15 enterprise value-to-sales multiples leading to pro forma EBIT margins of 11.7 percent and 11.8 percent, respectively.
BAML sees Nokia’s patent and licensing division contributing about €500 million in EBIT during FY15 with the potential for more upside surprise.
Thanks Tom for the Tip. Cheers!!