Nokia got a big vote of confidence from Wall Street on Wednesday. Morgan Stanley raised its price target for the Finnish telecom equipment maker to €8.50 from €6.50, making it the highest target on the street according to Bloomberg.
The bank points to strong demand tied to AI and cloud infrastructure spending as the main reason behind the upgrade. Analysts also note that Nokia is benefiting from increased network investment and solid performance from industry peers.
Nokia stock closed at €6.83 on Wednesday on the Helsinki exchange. It has gained around 24% so far in 2026.
The upgrade comes during a choppy stretch for the stock. Nokia dropped roughly 5% at one point on Wednesday after breaking below its 5-day moving average, a technical level that tends to draw attention from short-term traders.
That pullback followed a strong run. The Helsinki-listed stock was up more than 12% over the prior week and over 37% in the past month, leaving it open to profit-taking.
On the NYSE, Nokia’s American depositary receipt last traded around $7.90 at Tuesday’s close, up 1.28% on the day.
Not all analysts are bullish. DNB Carnegie downgraded Nokia from buy to hold with a $6.50 target on March 10. Danske Bank made a similar move in late February with the same target level.
That string of rating changes has added to investor unease, along with Nokia’s decision to trim its 2026 profit guidance alongside its Q4 results — even though it delivered a small earnings beat.
In its most recent quarter, Nokia posted adjusted operating profit of €435 million on net sales of €4.83 billion. That beat market expectations and showed 12% year-on-year sales growth, though profit was still down about 10% from a year earlier.
Growth has been strongest in optical and IP networking, where sales to hyperscalers and cloud providers are picking up speed.
Moody’s affirmed Nokia’s Ba1 credit rating in December and shifted its outlook to positive, expecting profitability to improve through 2026–2028. NVIDIA holds a 2.9% equity stake in the company.
Nokia ended September 2025 with roughly €6.1 billion in cash and committed credit facilities extending well into the next decade.
Mobile network infrastructure remains a weaker spot. Radio access network spending has stayed subdued, and mobile networks sales slipped about 2% year-on-year in the latest quarter.
At Mobile World Congress, Nokia showcased AI-driven radio access network solutions and early 6G work alongside NVIDIA and several operators.
The broader analyst consensus remains cautious-to-positive. MarketBeat data from early January showed a “Moderate Buy” rating, with 8 buys, 3 holds, and 1 sell across 12 covering firms. The average 12-month price target for the ADR sits around $6.10, though Intellectia AI puts the average closer to $7.36 with a high estimate of $8.50.
Morgan Stanley’s revised €8.50 target is now the highest price target on the market for Nokia.
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