Nokia stock outlook: Citi sees upside to €6.50 a share

Shares of Nokia Corporation (HEL: NOKIA) down roughly 20% versus the start of the year are significantly undervalued, a Citi analyst suggested in his bullish note this morning.

Nokia stock has a 45% upside

Andrew Gardiner said Nokia could be a €6.50 stock as he upgraded the telecommunications company to “buy” on Tuesday. His price objective translates to a 45% upside from here. The analyst wrote:

The stock trades at a PE multiple of 16.50 at present. Nokia sits at the heart of the global shift to 5G technology – a market that’s expected to grow by nearly $130 billion through 2026, as per a recent report from Technavio.

Nokia has ‘fundamentally’ improved

The Citi analyst also attributes his constructive view on Nokia Corporation to its “improving fundamentals” that, he says, investors have not factored into the stock price so far. He added:

Nokia is scheduled to report its fiscal Q2 results in July. That’s when the Finnish multinational will revise its guidance, providing a catalyst for the stock price to rally up, Gardiner concluded.