Bank of America raises Nokia price target to 15.6 euros with a “buy” rating
In a report published this morning, Bank of America reiterates its “buy” rating for Nokia and raises the price target from 14.4 euros to 15.6 euros, representing an upside potential of over 44 percent. The investment bank expects the company to report another strong accumulation of artificial intelligence (AI) related orders in the interim report to be released on July 23rd.
According to the U.S. bank, investor attention will focus particularly on the size of the order backlog in the AI and cloud services segments. BofA expects second-quarter AI technology-related equipment orders to be at least at the same level as the one billion euros recorded in the first quarter, thanks to recently won data center switch contracts and continued demand for optical transmission components.
Earnings forecasts revised upwards
Consequently, the bank expects second-quarter operating profit (EBIT) to exceed market consensus estimates, supported by the continued streamlining of the business portfolio and margin improvement. Accounting for this favorable AI development, Bank of America has raised Nokia’s revenue forecasts by 1–6 percent for the years 2026–2028, which has led to an upward revision of operating profit forecasts by 2–12 percent.