Nokia, the most bullish of the EuroStoxx 50 with the help of Reddit members

In just one week, the titles of have experienced a rise of 17% to 3.9 euros per share -after reaching maximums of a year and a half on Thursday at 4.40 euros-, becoming, with 25%, the most bullish of and the fourth of in 2021.

On this occasion, the catalyst that has unleashed the purchases has not been a relevant announcement nor better-than-expected results, but the push of the , which after the stratospheric rise in and raw materials such as the , have also taken notice of the company finnish

On Wall Street, Nokia’s ADRs with 23.5% in the year, revalued nearly 40% last Wednesday in a day of high volatility and intraday peaks of more than 100% that led the regulator to suspend the listing. value up to two times. A euphoria for the technology that also reached the Old Continent, although from the highs of Thursday the action corrected 11%.

“We do not rule out that the speculative pressure could continue”, they point out from Banco Sabadell, extending an anomalous situation for a value of the Eurostoxx50, which “may give rise to strong correction movements”, they add.

Sabadell: “We do not rule out that speculative pressure could continue”

Despite the fact that the rises have left it without potential and with an advice to hold against its main competitor, the Swedish company – which has a buy recommendation from the FactSet consensus and a margin to advance 15% – the analysts of the Catalan entity maintain a positive view of Nokia’s ability to recover lost ground in .

“If it reaches 5 euros per share, it would already be discounting an EBIT margin of more than 14%, above the upper part of the range of the company’s old long-term objective. In these circumstances, it would seem very demanding given the current volatility and we would take the opportunity to undo positions”, affirm the experts from Sabadell.

The firm will present its 2020 results on Thursday, in which the consensus expects its net profit to reach 1,276 million euros, compared to 14 million earnings in 2019. “Growth may remain limited this year, as it invests a lot of R&D to catch up with its rivals in the 5G equipment market,” said John Butler, an analyst at Bloomberg Intelligence. The expert grants more potential to other business segments such as optical, IP routing, software and licences.