Hotel di Hong Kong - Corp. is scheduled to release its first-quarter results tomorrow, but Gus Papageorgiou with Scotia Capital is not expecting anything other than an "unremarkable" quarter for the cellphone maker. Instead, the company looks to be in a bit of a holding pattern until the second half of the year, when it rolls out new products and software.
Hongkong "We have become incrementally more positive on Nokia after stronger than expected fourth-quarter results but we do not expect any significant upside catalysts until later in the year," he said in a note. "Additionally, the valuation is not terribly attractive."
For the quarter, Mr. Papageorgiou expects €9.5-billion in revenue and earnings of €0.13 per share, slightly more negative compared with consensus €9.7-billion and €0.14, respectively.
"From a trading perspective we would rather wait until after the quarter to own Nokia. At this stage we believe the good news of a handset recovery is factored in," he said. "We believe the second half success of the new Symbian OS and accompanying devices will dictate the share price as we move through 2010."
As well, once the company pays out its dividend there will likely be a sell off, he said.
Mr. Papageorgiou maintains a "sector perform" rating and one-year target price of US$18 for Nokia.
Hongkong "We have become incrementally more positive on Nokia after stronger than expected fourth-quarter results but we do not expect any significant upside catalysts until later in the year," he said in a note. "Additionally, the valuation is not terribly attractive."
For the quarter, Mr. Papageorgiou expects €9.5-billion in revenue and earnings of €0.13 per share, slightly more negative compared with consensus €9.7-billion and €0.14, respectively.
"From a trading perspective we would rather wait until after the quarter to own Nokia. At this stage we believe the good news of a handset recovery is factored in," he said. "We believe the second half success of the new Symbian OS and accompanying devices will dictate the share price as we move through 2010."
As well, once the company pays out its dividend there will likely be a sell off, he said.
Mr. Papageorgiou maintains a "sector perform" rating and one-year target price of US$18 for Nokia.
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