Barclays Issues Nokia Co Update, Sees Major Product Milestones in Mid 2010 (NOK)

by Chip Brian


12/3/2009-Thursday morning Barclays Capital Equity Research issued a company update to clients on shares of the world's largest handset maker Nokia (NYSE:NOK).

Barclays wireless equipment analyst Jeff Kvaal said that Nokia's 2010 phones guidance was inline with expectations of 10% growth, flat unit share, improved value share, and 12% to 14% margins. However, the Finland-based company didn't add to its previously announced cost reduction plans.

That being said, Barclays sees 10% unit growth as a conservative outlook, as they modeled 13%, but noted that Nokia's "flat to up" smartphone market share outlook maybe "aggressive."

Regarding the company's Q4, management didn't offer a view other than saying new smartphones, which include N97 mini, X6, 5230, were doing well and Barclays own checks indicate Nokia's below seasonal growth outlook may prove to be conservative.

Symbian remains the company's operating system since it holds the ability to reach the "low end smartphone market" and Barclays said that Maemo 6 should enter the high end in 2H10.

Barclays concluded by stating that Nokia expects to improve the UI/experience with a Symbian refresh in mid 2010 and the company sees major product milestones in mid to late 2010.

Barclays maintained both its equal weight rating on the company's stock as well as its $14.00 price target.