We see this acquisition as incrementally negative," says Bernstein. Doubling down on mobile phones highlights lack of attention on the enterprise side.
A "hail mary pass," says Oppenheimer's Shaul Eyal. The transaction is a "call option on mobile," he says, where Microsoft stands to maybe see a positive result without risking too much money. The catalysts of a dividend hike, a potential new CEO, and shareholder activism could outweigh any negativity from this deal, he hopes, maintaining his Buy rating and $37 price target.
NOK +45% premarket.