CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We maintain our Buy rating and raise our 12-month target price to USD22 (from USD16). Our target price is based on a 2027 P/Sales multiple of 4.65x, representing 0.5 standard deviation above the five-year average of listed Optical Network peers (including Ciena, Coherent, and Lumentum) of 3.25x. The premium reflects Nokia's growing exposure to Optical Networks, which we believe should benefit from rising AI-driven data center interconnect and cloud networking demand. We maintain our revenue forecasts of EUR21.5B (+8% Y/Y) in 2026 and EUR23.3B (+8% Y/Y) in 2027, reflecting continued growth in AI-related networking demand, expanding cloud and data center investments, and a gradual recovery in telecom spending. We keep our EPADS estimates at EUR0.32 (+10% Y/Y) in 2026 and EUR0.39 (+22% Y/Y) in 2027, supported by a richer business mix, increasing contribution from higher-margin infrastructure businesses, operating leverage from revenue growth, and continued cost discipline.