On Feb 7, 2014, we upgraded our recommendation on
) to Outperform from Neutral.
COMTECH TELECOM (CMTL): Free Stock Analysis
HARRIS CORP (HRS): Free Stock Analysis Report
NOKIA CP-ADR A (NOK): Free Stock Analysis
SHORETEL INC (SHOR): Free Stock Analysis
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Why the Upgrade?
Divestiture of its unprofitable Device segment coupled with
growing popularity of its HERE mapping business will not only
drive margins but will also boost revenues. Moreover, continuous
contract wins, aggressive deployment of 4GLTE network across
China coupled with higher capital expenses related to network
restructuring in emerging nations may bolster top-line growth for
Nokia Solutions and Networks (NSN) won a major contract in
Russia. VimpelCom, the third largest telecom operator in Russia,
selected NSN to provide equipment and services for its 4G LTE
(Long-Term Evolution) network deployment plan. In Dec 2013, NSN
renewed its contract with the largest Taiwanese telecom operator,
Chunghwa Telecom, and has also extended its deal with Saudi
Arabian carrier, STC.
Nokia also teamed up with Continental, an international
automotive supplier, to offer connected car service to vehicle
Moreover, the company believes that its newly reported segment,
Advanced Technologies, will generate more than $800 million in
fiscal 2014 with the sale of its handset division to Microsoft.
Microsoft will act as intellectual property licensee, thereby
driving Nokia's patent business going forward.
Nokia currently carries a Zacks Rank #2 (Buy).
Stocks That Warrant a Look
Other stocks that are worth considering within this sector are
Comtech Telecommunications Corp.
). ShoreTel currently sports a Zacks Rank #1 (Strong Buy), while
both Harris and Comtech carry a Zacks Rank #2.