Amtech: Nokia Yet to Prove Itself in Smartphones

Looking ahead to the June quarter report from Nokia ( NOK ), analyst Mark McKechnie of Greenwich-based Broadpoint AmTech, nudged up his estimates for the Finnish wireless manufacturer. Not that McKechnie has become more optimistic on the stock, which he rates Neutral…he’s adjusting for currency. For the current year ending December 2009, the analyst forecasts earnings per share of €0.60 (or $0.82), and €0.80 (or $1.12) for 2010. Despite Nokia’s recently-announced deal to work with Intel ( INTC) on newfangled mobile-devices, McKechnie thinks the company has yet to prove itself against smartphone leaders like Research in Motion ( RIMM ). “While NOK will benefit on the recovery,” he says, “we favor [Research in Motion] RIMM or [ Qualcomm ] QCOM as secular growers. We believe NOK’s margins will improve with volume throughout the year, but at a more modest pace than consensus given competition in all segments.” As for the just-ended June quarter, ... (link)