Wall Street not impressed by the new Nokia Lumia models as Nokia's stock is downgraded by brokers
On Friday, brokerage firms Deutsche Bank and Societe Generale both downgraded Nokia's stock to sell. Analysts at Deutsche Bank said that the Nokia Lumia 820 and Nokia Lumia 920 won't stop Nokia's current downward sloping market share trend in the face of tougher competition. Deutsche Bank analyst Kai Korschelt told clients in a research note that low cost Android models will be taking market share away from Nokia in 2013. Since Nokia made a low in June, the stock had risen 50%. But the broker now has put a target of $2.05 USD on Nokia's stock, which is under the OEMs current stock price, and has a sell recommendation on the stock.
leaving nothing left for investors to get excited about. In general, analysts and investors were upset that Nokia did not release pricing information and also did not offer a release date for the phones. On Friday, rumors started spreading about a November 2nd launch for the higher end Nokia Lumia 920.
While Wall Street sees Nokia missing an opportunity to light a fire under its stock, Jo Harlow, Senior VP of smart devices at Nokia, said that the launch of the two new models is a step in a journey. Harlow said that the Nokia Lumia 920 and Nokia Lumia 820 are not the only Windows Phone 8 models coming from the OEM . The executive says that "not one moment in time defines everything." She said that Nokia provides plenty of differentiation of the OS using NFC compatibility and improved mapping.
Those familiar with how the market works won't be surprised to hear that Nokia shares rose 7.32% on Friday to $2.64.