S&P Cuts Nokia Rating To Hold From Buy; Trims Estimates

Standard & Poor’s telecom analyst Clara van der Elst today lowered her rating on Nokia (NOK) to Hold from Buy, reducing her target price to $18 from $26. The move follows the company’s Q3 earnings announcement earlier today . In a research note, van der Elst said she is concerned about the company’s 15% market share loss from a year earlier in the high-end handset market; she sees risk the company loses share overall in 2009. The S&P analyst also says that gross margin pressure is likely to increase due to lower selling prices. She cut her 2008 per-share EPS estimate to $1.98 from $2.35; for 2009, she goes to $1.85, from $2.28. NOK today is up 52 cents, or 3.4%, to $15.63. (link)