Nokia Oyj (HEL:NOKIA) saw its shares climb 3.57% on Friday, closing at €11.17, but the advance occurred on notably low trading volume. Despite the daily gain, the stock ended the week down 1.93%, trailing the broader OMX Helsinki 25 index, which rose 2.03% over the same period. The disparity left Nokia 3.96 points behind the benchmark, underscoring persistent underperformance.
Volume Dips Sharply
Friday's trading session saw only 5.27 million shares change hands, less than half the average daily volume recorded from Monday through Thursday. This represents a significant drop from the prior Friday's 13.95 million shares. The low volume suggests that the rebound was not driven by strong conviction but rather by specific catalyst, as the stock recovered from a 5.27% decline the previous day.
Bank of America Lifts Target
The positive move on Friday was sparked by an upgrade from Bank of America (NYSE:BAC), which raised its price target on Nokia to €15.60 from €14.40, maintaining a buy rating. The bank cited expectations that second-quarter AI hardware orders will at least match the €1 billion recorded in the first quarter, driven by wins in data center switches and steady demand for optical networking equipment.
Analyst Consensus vs. Current Price
Despite the recent gains, Nokia's current price of €11.17 sits above the average analyst target of €10.64, according to data from MarketScreener. The consensus rating among 23 analysts remains "Outperform," with a high target of €18.00 and a low of €4.65. The stock has surged 100.47% year-to-date, reflecting strong investor optimism around its AI and cloud networking businesses.
Q2 Earnings on the Horizon
Nokia is scheduled to report its second-quarter and first-half results on July 23, 2026, at 11:30 a.m. EEST. The upcoming report will be a key test for the company's AI and Cloud segment, which saw customer net sales jump 49% year-over-year in Q1, accounting for 8% of total revenue. CEO Justin Hotard previously stated that the company is "increasing our growth assumption for Optical and IP Networks," signaling confidence in the pipeline.
Recent Developments
Orange Belgium NV (EBR:OBEL) recently selected Nokia as the exclusive supplier for a multi-year upgrade of its optical transport network in Belgium. Philippe Toussaint, CTO of Orange Belgium, described the project as a "state of the art single optical network." Guil Yazdi, Nokia's VP and client executive for Orange, highlighted that the deal would support an "AI-ready connectivity platform," further bolstering Nokia's position in the AI-driven networking space.
Technical Outlook
From a technical perspective, Nokia's ability to sustain its rebound will depend on whether it can close above last week's high of €11.83. A move below the €10.76-€10.68 support zone would negate the Bank of America-driven bounce ahead of earnings. The stock's performance in the coming sessions will be closely watched as traders position for the Q2 report.
