Nokia: Sluggish earnings growth outlook limits upside

Af Atte Riikola
Nokia's market does not seem to offer any substantial leverage for net sales growth in the coming years, which also makes profitability improvement challenging. In our view, the lack of earnings growth also limits the upside potential of the stock's low valuation multiples. Still, we expect the improved earnings performance of recent years to hold up reasonably well and, with improving cash flow in the coming years, Nokia's profit distribution should be abundant.