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Nokia Corporation Shares are a Buy on Vodafone Group Results and Indian Progress say Liberum

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Both the Nokia Corporation ADR (NYSE:NOK) and Nokia Oyj (HEL:NOK1V) have received welcome forecasts recently. Research analysts we track at a major independent brokerage suggest shares in both will continue to display out-performance.

Liberum’s new update on NOK is delivered hot on the heals of the news of 10 deals being closed during the last September quarter across 2G, 3G, and 4G platforms around India by Nokia Networks. This confirms that they have now overtaken their closest rival Ericsson, becoming the greatest supplier of equipment by revenue, leading to expectations that the Indian unit will continue to be a key driver of global business for Nokia Networks.

India’s region head cites continued, formidable growth in data revenue observed in Indian operators’ finances as signs the positive momentum in India is predicted to continue.

In other quarters, Vodafone reveals of its mobile network deployment that only 40% is now complete of its £19bn pound Project Spring.

Vodafone’s deployment is expected to increase revenue for both Nokia Networks and Ericsson, both major supplies for the project – with Liberum Capital predicting growth throughout 2015 for Nokia.

From Liberum capital, Janardan Menon elucidates the news saying:

‘Our buy thesis on Nokia is partly based on our view that sales growth at Nokia Networks will convert to higher margins and earnings’ from the fourth quarter of 2014 through to 2015, citing strong positive revenue trends in India in contracts and revenue and Vodafone Group PLC (LON:VOD).

Menon accorded his opinion with widespread belief that ‘Nokia Networks is gaining share in a number of markets including the US, India, China, Japan’ and many additional smaller markets, predicting that Nokia Network’s margins will ‘beat conservative expectations’ in the fourth quarter of 2014.

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