Analysts: Revenue Declines Will Plague Nokia and 3 Other Notes to Check Out
Nokia (NYSE:NOK): Deutsche Bank believes that revenue declines and peaking gross margins will plague Nokia Solutions and Networks and result in another restructuring for the company. The firm expects Nokia Solutions and Networks’s revenues to keep declining, given slowing high-margin Capex exposure in developed Asia as well as limited growth in the U.S. and Europe. The analyst adds that ongoing cash burn will deplete the net cash by year-end 2014, and that a potentially value-unlocking breakup of the company is unlikely. Deutsche Bank rates shares a Sell and views risk/reward profile as unfavorable.
Sprint (NYSE:S): After meeting with Sprint’s senior management, Wells Fargo thinks the company’s results for the second half of 2013 are likely to be messy. However, the firm contends the company is beginning to improve its competitive positioning and marketing message. The firm added that Sprint’s margins are poised to expand and keeps an Outperform rating on the shares.
Avago (NASDAQ:AVGO): RBC Capital sees risk to Avago’s fourth-quarter guidance when it reports its third-quarter results Wednesday but would use any potential weakness to buy shares ahead of stronger LTE trends and leverage. Shares are given an Outperform rating with a $47 price target.
Nike (NYSE:NKE): After conducting checks with more than 100 U.S. retailers, Stifel reports that Nike “remains dominant.” The firm thinks the company’s North America unit growth can reach low double-digit percentage levels in 2014, and Stifel’s first-quarter estimates for the company remain significantly above consensus levels. Stifel keeps a $68 price target and a Buy rating on the stock.