Telecommunications giant Nokia's operating profit in 2028 could exceed the company's own forecasts by more than 50 percent, according to JP Morgan, which has raised its price target for the stock to €18 from €12. This was reported by Bloomberg News.
The bank estimates that market projections do not yet account for new revenue streams from AI and cloud operations, nor the increased profitability that higher revenues could generate.
JP Morgan's forecast for Nokia's 2028 EBIT stands 58 percent above the midpoint of the company's own guidance of €2.95bn. Analysts also suggest that Nokia's long-term forecast is outdated, as the strength of the optical networking market was not anticipated when the guidance was first presented.
Nokia shares have risen 122 percent so far this year.
Nokia Oyj specializes in the design, production and marketing of telecommunications equipment. Net sales break down by activity as follows:
- development of network infrastructure solutions (40.1%): IP routers and optical networking solutions;
- development of mobile broadband network solutions (39.2%): aimed in particular at telecommunications operators. In addition, the group offers professional services (network planning and optimization, systems integration, installation, implementation and maintenance of telecom networks);
- software development (13.1%): software for customer experience management, network operations and management, communication, collaboration and billing, IoT solutions and cloud management platforms;
- development of advanced technology (7.6%).
Net sales are distributed geographically as follows: Europe (31%), North America (31.2%), India (7.7%), China (4.6%), Asia/Pacific (11%), Middle East and Africa (10.6%), and Latin America (3.9%).
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