Analysts at Canaccord Genuity have upgraded Nokia stock and raised the price target to $10 per share. They have assigned an estimated 2015 revenue of €11.4 billion to NSN. They estimate Nokia patents value at about €9 billion and its HERE maps business at about €1.5 billion.
They have also disclosed Nokia’s guidance about expected patent licensing revenue from Nokia’s wide patent portfolio. So, while Nokia expects a quarterly revenue of €600 mn from patent licensing, analysts consider it a conservative estimate. They think Nokia can generate much more than what this guidance predicts.
The Canaccord Genuity team believes that this includes conservative assumptions for Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) and that it will increase materially in the long term. They’re expecting the ruling in the case with Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) to be handed out in 2015. They also expect Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) to put in place new initiatives for monetizing patents and providing high-margin growth opportunities for the longer term. In addition, they see further potential upside from Nokia’s upcoming licensing negotiations with Apple Inc. (NASDAQ:AAPL), which are expected exiting 2016.
After the meeting at the Mobile World Congress, Walkley said they believe Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s patent portfolio is strong and estimate that about a third of the company’s patents are related to connectivity. They believe another third is related to device hardware technologies like the camera and other features and that the last third is related to device user interface, software and services.
They believe that most of Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s licensing revenue comes from standard essential patents for LTE, WCDMA, GSM and other connectivity technology. They see more licensing opportunities from the NSN patents because they have not yet been included in any of Nokia’s previous licensing deals.
Thanks Kero for the tip. Cheers!!
