Nokia Oyj has risen as the business intends to improve guidance in response to increased 5G demand.
NYSE: NOK has seen its target price raised by banks.
It’s a bullish indicator when the price breaks above the triple top.
I’m back from the cold once more. Nokia Oyj (NYSE: NOK) closed at $5.88 on Tuesday, up almost 9%, and investors are wondering if there’s more to come. Since its heyday as the world’s most dominating mobile phone manufacturer, the fallen Finnish telecoms behemoth has undergone various transformations. The current upsurge has the potential to be a significant one.
Here are three reasons to be optimistic about Nokia’s prospects:
According to Nokia CEO Pekka Lundmark, the immediate future is brighter. On July 29, the company’s full-year guidance for 2021 would be revised to the upside, according to the company’s relatively new management. Sales are expected to be in the region of EUR20.6-21.8 billion, which is lower than the EUR21.9 billion forecast for 2020.
Although numbers in euros rather than dollars may perplex American traders, these exchange rates also add to an improved outlook. Dollar income brings in more euros for the Espoo, Finland-based company, thanks to the recent depreciation of the common currency.
Apart from the financial benefits, these larger sales are due to increased demand for Nokia’s 5G technology. The equipment upgrade cycle, according to Lundmark, will take twice as long as the 4G upgrading cycle. Concerns regarding technology, which were widespread in the early days of COVID-19, have also subsided.
Insider optimism is one thing, but a positive outward opinion is quite another. In late April, SEB Equities began the upgrade cycle by advising that investors buy the stock. In early May, Morgan Stanley upgraded NOK to “overweight” from “neutral.”
In late June, Goldman Sachs, one of the most powerful players in the financial markets, was the next to switch from neutral to buy. Analyst Alexander Duval also set a target price of $6.50, which is higher than current levels.
The most recent is JP Morgan, which has placed NOK in its “overweight” category, with a price target of $7.80. That’s a 32% increase from Tuesday’s closing price.
NYSE: The Norwegian crown has risen beyond the important $5.67 mark, which it reached on June 3, June 7, and ultimately on June 25, the day of the GS upgrade. A bullish sign is a convincing upsurge – and the ability to close above that tight cap.
On the four-hour chart, the price also blasted off the 50 Simple Moving Average in its most recent move. NOK appeared to be fixed to that level, and it has suddenly vanished.
In May, the 50-day SMA crossed over the 200-day SMA on the daily chart. Bulls have benefited from this Golden Cross pattern, which has seen higher highs and lower lows.
The fact that the Relative Strength Index is above 70 on both the four-hour and daily charts, indicating that NOK is overbought, may provide some comfort to bears.
The initial resistance is at $5.99, followed by the banks’ targets of $6.50 and $7.80. The broken triple-top of $5.67 provides support, followed by $5.25 and $5.04.
There are reasons to be bullish on NYSE: NOK in general.
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