Nokia upgraded on telco recovering, larger partnership with Microsoft: JP Morgan

Nokia (NYSE:NOK) was upgraded to Overweight from Neutral by J.P. Morgan due in part to a recovery in telecommunications spending in 2025 and the Finnish company’s newly expanded partnership with Microsoft (NASDAQ:MSFT).

“Looking into ’25, JPMC expects that a small recovery in telco spending is likely due to the end of the US telco inventory correction and the next wave of 5G spending in India,” said J.P. Morgan analyst Sandeep Deshpande, in an investor note. “Nokia should also grow in the enterprise market, E.G. the recent expansion of its relationship with Microsoft Cloud.”

Last month, Nokia expanded its multi-year agreement to supply Microsoft Azure datacenter networks, strengthening its role as a strategic supplier for Microsoft’s cloud infrastructure. The partnership will grow Nokia’s global footprint to more than 30 countries.

J.P. Morgan increased its price target on the stock to €6.05 from €4, or to $6.40 from $4.23.

Nokia edged higher during early trading on Monday.

J.P. Morgan also noted that Nokia enters 2025 with beatable earnings estimates.