Please ensure Javascript is enabled for purposes of website accessibility

Why Nokia Stock Popped Today

By Joe Tenebruso - Feb 1, 2021 at 8:21PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The telecom equipment specialist could deliver handsome gains to investors.

What happened

Shares of Nokia (NOK 2.07%) jumped 7.2% on Monday following bullish analyst commentary. 

So what

DNB Markets analyst Frank Maao lifted his rating on Nokia's stock from sell to buy and boosted his share price forecast from $4.83 to $5.79. His new estimate represents potential gains for investors of roughly 20%.

A digital bull is climbing an upwardly sloping stock chart.

Nokia's stock has plenty of upside, according to analysts at DNB Markets. Image source: Getty Images.

Maao says rival telecom equipment maker Ericsson's solid fourth-quarter results bode well for Nokia and its 5G-focused growth initiatives.

Now what 

Due in part to its low share price, Nokia has become a favorite stock among traders on the increasingly popular Reddit group, r/WallStreetBets. That's led to a surge in Nokia's trading volumes in recent days, which has helped to boost its share price. 

But unlike GameStop, AMC Entertainment, and many of the other stocks targeted by WallStreetBets' traders, Nokia is not a heavily shorted stock. The 5G equipment maker also has much more promising growth prospects due to the expected rapid rollout of 5G wireless technology around the world.

Investors will get a chance to check in on Nokia's 5G-related progress when it reports its fourth-quarter financial figures, which are expected to be released on Feb. 4. 


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nokia Corporation Stock Quote
Nokia Corporation
$4.93 (2.07%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.