Nokia Oyj's Future Outlook Based on Analyst Predictions

Nokia Oyj (NOK) has a Buy rating from Northland Securities with a $6.50 price target. JPMorgan lowered its price target to EUR 5.15 from EUR 5.60, maintaining an Overweight rating. The median price target of $4.25 implies a 21.77% upside from current levels. Nokia provides network infrastructure, software, and technology services. Some AI stocks may offer greater upside potential and less downside risk.

Title: Nokia Oyj (NOK): Analyst Ratings and Q2 2025 Financial Performance

Nokia Oyj (NOK), a prominent player in network infrastructure, software, and technology services, has garnered attention from analysts with varying price targets. Northland Securities recently reiterated a Buy rating on NOK with a $6.50 price target [1]. Meanwhile, JPMorgan lowered its price target to EUR 5.15 from EUR 5.60, maintaining an Overweight rating [1]. The median price target of $4.25 implies a 21.77% upside from current levels.

NOK's second-quarter (Q2) 2025 financial report reveals a mixed bag of performance. The company reported a 1% year-over-year (YoY) decline in comparable net sales on a constant currency and portfolio basis, primarily driven by a 13% decline in Mobile Networks [2]. Network Infrastructure and Cloud and Network Services, however, grew by 8% and 14%, respectively. Nokia Technologies also showed a 3% growth, securing several new agreements in the quarter [2].

The company's gross margin remained stable at 44.7% YoY, while operating profit was impacted by a EUR 50 million negative impact from venture funds and currency revaluation, leading to a 290 basis point (bps) decrease in operating margin to 6.6% [2]. Despite these challenges, NOK generated free cash flow of EUR 1.1 billion in the first half of 2025 [2].

Looking ahead, NOK expects a stronger second half of the year, particularly in Q4, driven by normal seasonality. However, currency fluctuations and tariffs pose headwinds to its full-year operating profit outlook, which has been revised to a range of EUR 1.6 billion to EUR 2.1 billion [2].

While Nokia's performance in Q2 was mixed, analysts' ratings suggest that the stock may have potential for growth. Investors should closely monitor the company's progress in integrating Infinera, the commercial momentum, and the impact of currency fluctuations and tariffs on its financial performance.

References:
[1] https://finance.yahoo.com/news/where-nokia-oyj-nok-heading-144616544.html
[2] https://www.placera.se/pressmeddelanden/nokia-nokia-corporation-report-for-q2-and-half-year-2025-20250724