Nokia (NYSE: NOK) is frequently belittled for being slow to develop the latest smartphones and touchscreen devices, and its market share in the U.S. stinks, too.
But this morning, UBS analyst Gareth Jenkins saw something the rest of us may be missing, and raised his rating on the stock to ‘buy’ from ‘neutral’ and increased his price target to $19.55 from $14.16 a share, reports Barron’s. The stock is currently trading down 7 cents at $15.50 a share.
He said there’s two primary reasons why Nokia’s underrated. First, he said Nokia will be able to leverage its global market share as more people adopt smartphones. Second, he said they should be able to leverage their market share to sell services in addition to devices.