Nokia (NOK) Shares Climb 5% Following Morgan Stanley’s Street-High Price Target Upgrade

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TLDR

  • Morgan Stanley increased Nokia’s price target from €6.50 to €8.50, representing the highest on the market
  • The firm identifies robust demand for AI and cloud infrastructure investments as primary catalysts
  • Nokia shares finished Wednesday at €6.83, gaining approximately 24% year-to-date
  • This upgrade follows recent downgrades by DNB Carnegie and Danske Bank that created selling pressure
  • Nokia exceeded Q4 earnings forecasts but reduced its 2026 profit outlook

Nokia received significant Wall Street endorsement on Wednesday. Morgan Stanley lifted its price target for the Finnish telecommunications equipment manufacturer from €6.50 to €8.50, establishing it as the highest target on the street per Bloomberg.

Nokia Oyj, NOK
NOK Stock Card

The institution attributes the upgrade chiefly to robust demand linked to AI and cloud infrastructure expenditure. Analysts additionally observe that Nokia is gaining from heightened network investments and strong results from sector counterparts.

Nokia shares settled at €6.83 on Wednesday on the Helsinki exchange. The stock has advanced approximately 24% thus far in 2026.

The upgrade arrives amid volatile trading for the shares. Nokia declined about 5% at one stage on Wednesday following a drop below its 5-day moving average, a technical threshold that typically attracts short-term trader attention.

That retreat came after a powerful rally. The Helsinki-listed equity had risen more than 12% during the previous week and over 37% in the preceding month, making it susceptible to profit-taking.

On the NYSE, Nokia’s American depositary receipt last changed hands near $7.90 at Tuesday’s close, gaining 1.28% for the session.

Recent Downgrades Added Pressure

Not all analysts maintain bullish stances. DNB Carnegie lowered Nokia from buy to hold with a $6.50 target on March 10. Danske Bank executed a comparable action in late February at the same target price.

This series of rating adjustments has contributed to investor uncertainty, combined with Nokia’s move to reduce its 2026 profit forecast alongside Q4 results — despite achieving a modest earnings surprise.

In the latest quarter, Nokia reported adjusted operating profit of €435 million on net sales of €4.83 billion. The results exceeded market forecasts and demonstrated 12% year-over-year revenue expansion, although profit remained approximately 10% lower than the prior year.

AI and Cloud Driving Growth

Expansion has been most pronounced in optical and IP networking, where revenue from hyperscalers and cloud providers is accelerating.

Moody’s confirmed Nokia’s Ba1 credit rating in December and revised its outlook to positive, anticipating profit improvement through 2026–2028. NVIDIA possesses a 2.9% equity interest in the firm.

Nokia concluded September 2025 with approximately €6.1 billion in cash and committed credit lines extending deep into the following decade.

Mobile network infrastructure continues to represent a softer area. Radio access network expenditure has remained muted, and mobile networks revenue declined roughly 2% year-over-year in the most recent quarter.

At Mobile World Congress, Nokia demonstrated AI-powered radio access network solutions and preliminary 6G development alongside NVIDIA and multiple operators.

The wider analyst consensus stays cautious-to-positive. MarketBeat figures from early January indicated a “Moderate Buy” recommendation, with 8 buy ratings, 3 hold ratings, and 1 sell rating among 12 covering firms. The mean 12-month price objective for the ADR stands near $6.10, while Intellectia AI places the average closer to $7.36 with a peak projection of $8.50.

Morgan Stanley’s updated €8.50 objective now represents the highest price target on the market for Nokia.