Nokia Corp. announced a partnership with telecom operator Elisa to boost the deployment of industrial grade private mobile networks.
The target of the collaboration is to achieve market leadership in the high growth Finnish business market. The two companies will use new and existing radio network infrastructure to deploy private networks.
Nokia (NOK) and Elisa will collaborate on 5G private mobile solutions to help Finnish businesses accelerate digitalization and adopt industry 4.0 solutions aimed at boosting their productivity.
Private mobile networking is custom made to suit specific customer needs and provides reliable high bandwidth connectivity coupled with low latency. This allows for increased automation, safety and higher output.
Initially, the partnership will work on the maritime and ports, mining, manufacturing, logistics and utilities markets enabling these industries to deploy internet of things (IoT), machine learning and artificial intelligence.
Raghav Sahgal, President of Nokia Cloud & Network Services said, “With Elisa we can drive private mobile networking growth and establish Finland as a leader in this field.” (See Nokia stock analysis on TipRanks).
Earlier this month, DNB Markets analyst Frank Maao upgraded NOK to Buy from Sell and increased the price target to $5.83 (41% upside potential) from $4.83.
Maao noted, “The stock price has come down after the recent retail frenzy and Ericsson’s 4Q indicates strength in 5G cycle in Northeast Asia excluding China. Nokia’s capital markets day in March could be another catalyst and there can be increasing order momentum from those looking to diversify away from Chinese gear.”
The rest of the Street has a Moderate Buy consensus rating on the stock. That’s based on 3 Buys versus 4 Holds. The average analyst price target of $4.80 implies 16.2% upside potential to current levels.
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