Nokia drops after Goldman downgrade citing Samsung competition

Shares of Finnish telecommunications firm Nokia dropped around 3 percent on Monday after analysts at Goldman Sachs downgraded the stock from “neutral” to “sell.”

Analysts Alexander Duval and Hameed Awan wrote in a note that Nokia faces downside risks amid increasing competition from Swedish rival Ericsson and South Korean tech giant Samsung.

Nokia shares have outperformed the broader European tech sector by roughly 2 percent over the past 6 months, as investors hoped the rollout of new 5G wireless networks would boost the Finnish firm’s revenues. The Goldman analysts said investors might be too optimistic about Nokia given the company’s own projections for a slow start to the year.

“We believe there is scope for further downside to consensus, as our new estimates now factor in lower network revenues, a more conservative margin trajectory and more muted growth in the highly profitable patents business,” the analysts said.

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