Exane BNP upgrades Nokia to 'outperform' on AI growth pivot

Telefonaktiebolaget LM Ericsson

04/09/2025 13:17

** Exane BNP Paribas upgrades Finnish telecom firm Nokia NOKIA.HE to "outperform" from "neutral" seeing AI growth pivot driving faster top-line growth

** While Nokia's mobile business faces the same challenges as peer Ericsson ERICb.ST, the broker says it is more positive about Nokia's wireline exposure where AI datacentre investments could fuel faster growth

** With the
acquisition of Infinera
, the brokerage expects the share of hyperscaler revenue to grow beyond the current 5% of group revenue

** It sees the Network Infrastructure (NI) segment growing revenue 3% faster than consensus forecasts for 2026

** Exane BNP expects Nokia's Capital Markets Day, due on Nov. 19, to lay out a path to earnings expansion driven by a pick-up in NI growth and improvement profitability at Mobile Networks unit

** Out of 28 analysts that cover the Nokia share, 13 rate it "strong buy"/"buy", nine rate "hold", and six rate "sell"/strong sell"

 (Reporting by Marta Frąckowiak)

 ((marta.frackowiak@thomsonreuters.com))