Nokia Oyj

NOKIA: XHEL (FIN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€4.90	Jkp	Lcbzkfjlb

Nokia: Acquisition of Infinera Is a Smart Use of Capital

Matthew Dolgin

Jun 28, 2024

The agreement to acquire optical network solutions provider Infinera should lead to a beneficial increase in Nokia’s optical solutions scale and offers the opportunity for material cost savings. Nokia has been piling up cash while seeing its stock flounder amid a lull in wireless and wireline network spending in most geographies over the past year and a half. We think this is a good use of capital, and we continue to believe the shares are undervalued, as we are maintaining our EUR 5.50 fair value estimate.

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