Nokia (NYSE: NOK) disclosed that it has extended its partnership with T-Mobile Polska to modernize the latter’s existing radio network infrastructure and rollout of 5G services.
As per the agreement, Nokia will increase its share in T-Mobile’s network to 50%, at least for the next 10 years. Also, the company will provide T-Mobile its AirScale equipment portfolio, including Single RAN, AirScale base stations, and 5G Massive MIMO antennas for indoor and outdoor coverage.
The solutions will likely help T-Mobile in reducing complexity and increasing cost efficiency by allowing it to build on its existing network leadership and deliver 5G-related connectivity and capacity benefits to its consumers.
Further, Nokia will provide digital deployment, technical support for operations and maintenance, and professional services.
Tommi Uitto, the President of Mobile Networks at Nokia, said, “We are delighted to have been selected by T-Mobile to upgrade the operator’s existing network infrastructure across Poland, which will bring best in class 5G experiences to its customers. We’ve worked hand-in-hand with T-Mobile for a long time now and are proud that they trust in our technology leadership and product portfolio.”
Last week, Raymond James analyst Simon Leopold upgraded Nokia’s rating to Buy from Hold with a price target of $6.50 (implying 22.6% upside potential).
Leopold said that the company’s management has made progress in rebuilding credibility.
“We are most upbeat on strength from Fixed Access, followed by the Routing business; these are two areas where we think Nokia can raise prices and gain share,” he added.
Overall, the Street has a bullish outlook on the stock with a Strong Buy consensus rating based on four Buys and one Hold. The average Nokia price target of $7.01 implies upside potential of about 32.3% from current levels.
TipRanks data shows that financial blogger opinions are 85% Bullish on NOK, compared to a sector average of 69%.
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