(NOK) Nokia Analyst Upgrades Shares to Outperform

We are upgrading our recommendation on Nokia Corp. (NOK) to Outperform based on the company’s fourth quarter of 2012 financial results, which significantly outpaced the Zacks Consensus Estimates. Why the Upgrade Nokia’s flagship Lumia series of smartphones received reasonable market traction in the lucrative North American region. Further, its mid-range Asha series of full touchscreen phones also performed well in the emerging Asia-Pacific region. During the quarter, the company also improved its margins and cash position. A strong balance sheet with nearly $6 billion of net cash and a powerful patent portfolio will sustain the company’s long-term R&D activities. Moreover, Nokia Siemens Networks joint venture has shown signs of a turnaround. Nokia currently has a Zacks Rank #2 (Buy). Other Positives The Nokia-Microsoft (MSFT) combination may become a formidable challenger