Nokia's Share Price Takes a Hit as Analysts Cut Targets

Nokia Oyj, Finland's leading mobile phone maker, has seen its share price decline following a lukewarm fourth-quarter report, with analysts slashing their target prices. Handelsbanken and JP Morgan have cut their forecasts, while Citigroup has marginally raised its target. The broker Handelsbanken has emphasized the need for Nokia to reduce costs by 20-30% to regain investor confidence, a process that would require a significant overhaul of the company's operations.

Key Takeaways:

• Handelsbanken has cut its share price target on Nokia to EUR 7 from EUR 8, reaffirming its "reduce" rating, while JP Morgan has lowered its target to EUR 8.50 from EUR 10.00, maintaining its "overweight" rating.
• Citigroup has raised its target marginally to EUR 6.80 from EUR 6.40, but has confirmed its "sell" stance on the stock.
• The market is questioning whether Nokia will combine its mobile software operations with Android Inc, owned by Google, or with Microsoft, which is seen as a possible move.
• According to Handelsbanken, Nokia needs to reduce its costs by 20-30% to become an attractive investment while maintaining its market position.
• As of 1115 EET, Nokia's shares had declined by 0.89% to EUR 7.78 on the Helsinki stock exchange.

Statistics:

• EUR 7.78: Nokia's share price as of 1115 EET on January 31, 2011.
• 0.89%: Decline in Nokia's share price as of 1115 EET on January 31, 2011.
• EUR 7: Handelsbanken's revised target price for Nokia.
• EUR 8.50: JP Morgan's revised target price for Nokia.
• EUR 6.80: Citigroup's revised target price for Nokia.
• 20-30%: Reduction in costs that Nokia needs to achieve to regain investor confidence.

Sources:

• "Svenska Handelsbanken and JP Morgan slash Nokia's share price targets" by ADPnews, January 31, 2011.
• (The article does not provide specific external references for the other mentioned entities, but it's assumed that the information came from reputable sources such as Google and Microsoft corporations.)