Deutsche Bank analyst Kai Korschelt Monday morning cut his rating on Nokia (NOK) to Hold from Buy, slicing his price target to 9.50 Euros, from 13 Euros. He also reduced his EPS estimates to 54 Euro cents from 56 cents for 2009, to 74 Euro cents from 80 cents for 2010, and to 88 Euro cents from 98 cents for 2011.
Korschelt thinks we’re headed for a cyclical upturn in handset demand, but warns that competitive pressure in smart phones will significantly increase heading into the seasonally important fourth quarter, with 15-20 new models hitting the market. “We now believe Nokia’s portfolio refresh will be inadequate to enable share gains in Q4, which its current FY guidance implies,” he writes. “In addition, we believe the smart phone segment will commoditize in 2010, pressuring industry margins, while competition in the low end is also rising.”
NOK closed down 1 cent, or .1%, to $12.48.
Previously: Nokia: Goldman Downgrades To Neutral, Trims Estimates (August 13, 2009)