"Nokia's stock has climbed sharply on AI-driven enthusiasm, particularly around AI-RAN partnerships and 6G positioning, but the market may have gotten ahead of the earnings story."
"The trailing P/E of 64x looks demanding for a company whose trailing EPS stands at $0.13, even if the forward P/E of 23x reflects more realistic near-term earnings expectations."
"Nokia's six-month price gain of 77.91% has been fueled largely by AI infrastructure optimism, MWC announcements, and the Infinera acquisition narrative."
Grupo Santander analyst Carlos Trevino downgraded Nokia to Underperform from Outperform, setting a price target of EUR 6.85. The downgrade reflects a belief that the telecom equipment rally has peaked. Despite a strong year-to-date performance, current valuations suggest limited upside. The trailing P/E of 64x appears demanding given Nokia's earnings. Nokia's Q4 2025 results showed solid net sales and operating margins, but the stock's recent gains may have already priced in these fundamentals.
Read at 24/7 Wall St.
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