Nokia Battered by Analysts after Microsoft Announcement

Alacra Pulse Check Blog submits:
By Sheena Lee
Many analysts are giving a big thumbs down to Nokia (NOK) after the Finnish company announced last week that it would adopt Microsoft’s (MSFT) Windows operating system for its smartphones. “The decision to enter into a strategic relationship with Microsoft is well characterised as an important strategic fix,” Nokia CEO Stephen Elop told the Financial Times. “It is something we can rapidly execute on.” But the street is not convinced that Nokia can turn around its mobile phone business with the partnership and many rushed to downgrade the stock. The median price based on 17 analysts tracked by Alacra Pulse who have updated their targets since the announcement is $9.45, down from $12.30 in our November prognosis. The mean target is $9.84, not much higher than Tuesday’s closing price of $9.07. Only five of these analysts have a positive rating; seven are negative and five are neutral.Complete Story »