I suspect this is a case where UBS is effectively advising to sell, but diplomatically sticks to a “hold” rating to avoid potentially burning bridges with Nokia, which may be a client of the bank in certain contexts.
The brief reasoning I found seems very focused on the “here and now,” where potential future earnings improvements are not significantly taken into account:
“The Swiss bank UBS has maintained its neutral rating for Nokia shares and set a price target of 5.50 euros. The network equipment provider’s quarterly revenue fell short of consensus estimates, while its operating profit (EBIT) exceeded them, Francois-Xavier Bouvignies wrote on Thursday.”