Nokia Oyj (HEL:NOKIA) shares advanced on Friday in Helsinki trading, gaining 2.5% to close at €11.06, outperforming the broader OMX Helsinki 25 index, which rose 0.82%. The move came as U.S. markets were closed for the Independence Day holiday, leaving the company's American Depositary Receipts (NYSE:NOK) unchanged after a sharp 6.51% decline on Thursday.
The Helsinki-listed stock touched a session high of €11.06 and a low of €10.80, with trading volume of 1.70 million shares, well below the average of 19.77 million. Despite the day's gain, shares remain 26.3% below their 52-week high of €15.00.
Analyst Views Diverge Sharply
Analyst sentiment on Nokia varied widely this week. Danske Bank raised its rating to buy from hold, setting a price target of €14.00, implying a potential upside of 26.6% from current levels. UBS maintained a neutral stance with a target of €11.00, while LBBW downgraded the stock to sell, with a target of €9.75, suggesting an 11.8% downside.
The divergent views reflect uncertainty over Nokia's ability to capitalize on growing demand for optical networks driven by artificial intelligence applications. The company's first-quarter results showed AI and cloud customer net sales rising 49% year-over-year, now representing 8% of group sales, with €1 billion in orders from that segment.
Optical Network Deal in Belgium
On July 2, Nokia announced a multi-year agreement with Orange Belgium (EBR:OBEL) to become the sole supplier for modernizing the operator's transport network, integrating fixed and mobile networks into a unified optical transport system across Belgium. While no contract value was disclosed, Philippe Toussaint, CTO of Orange Belgium, stated the network should strengthen Belgium's digital economy. Guil Yazdi, Nokia's vice president and client executive for Orange, emphasized that networks can no longer rely on linear growth or legacy architectures.
The deal aligns with investor focus on Nokia's optical and IP networking divisions, which are expected to drive growth. The company forecast Network Infrastructure net sales to rise 12% to 14% in 2026, with Optical Networks and IP Networks together expected to increase 18% to 20%.
Index Impact and Market Context
Nokia's market capitalization of €63.45 billion makes it the largest component of the OMX Helsinki 25, which imposes a 10% cap on any single stock. At the cap, a 2.5% move in Nokia would contribute approximately 0.25 points to the index, roughly one-third of Friday's 0.82% gain. According to MarketScreener, Nokia's market value stands at $69.23 billion, followed by Nordea Bank at $65.5 billion.
The stock is trading in the middle of a broad analyst range, with targets from €9.75 to €14.00. The company is set to report second-quarter and half-year results on July 23, with its insider trading window closed since June 23.
