Oddo BHF maintains its 'neutral' rating on Nokia shares, with an unchanged target price of 3 euros.

Nokia indicated on Friday that it would not meet its targets for fiscal 2023 on sales, operating margin and free cash flow, reports Oddo BHF.

Indeed, the financial outlook assumed the finalization of license renewals (Oppo and Vivo) before the end of 2023. Completion is now expected by 2024.

Oddo BHF is also 'more concerned' about the Group's operating comments, which, despite noting some improvement in orders and maintaining the 2024 divisional outlook, indicate that Q4 was more difficult than expected.

Against this backdrop, the broker remains cautious on Nokia despite its low valuation (9x PE), as well as on the sector as a whole (Underperform opinion on Ericsson).

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