Morgan Stanley Lifts Nokia to Street-High €8.50 Target as Shares Jump 5%

Overview

• Morgan Stanley raised its Nokia price target to €8.50 from €6.50, maintained an Overweight rating, and designated the stock a top pick.
• Nokia closed at €6.83 in Helsinki following the upgrade and has gained roughly 24% year-to-date.
• Analysts cited accelerating AI and cloud capex, with forecasts calling for about 13% growth in Nokia’s Optical and IP division in 2026 and more than 20% growth in optical revenue.
• Earlier downgrades from DNB Carnegie and Danske Bank, each with $6.50 targets, had weighed on the shares in recent weeks.
• Nokia beat Q4 expectations with €435 million in adjusted operating profit on €4.83 billion in sales, trimmed its 2026 profit outlook, saw strength with hyperscalers offset weaker mobile/RAN demand, and holds a Ba1 rating with a positive outlook from Moody’s.