Nokia (NOK) shares got a boost Friday from positive comments by Piper Jaffray’s T. Michael Walkley, who reaffirmed his Buy rating and raised estimates on the company.

Walkley upped his 2008 EPS estimate to $2.66 from $2.40; for ‘09 he goes to $2.90 from $2.62. The Street sees $2.54 this year, and $2.83 next year.

“Our checks indicate strong sales in China, India and Middle East/Africa should offset potential weakness in Western Europe,” he writes. “Despite investor concerns of excess Chinese handset inventory and slowing handset sales, our meetings in China indicated improving handset inventory levels and expectations for another year of over 20% unit growth in China,” above his current forecast of 15% growth.”

Concludes Walkley: “With the company’s roughly $4 a share in net cash, share buyback program and solid dividend, we believe Nokia remains a compelling investment.”