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B. Riley initiates Nokia coverage with Buy rating despite Q2 operating loss

10/4/2026

Riley initiated coverage of Nokia Oyj (NYSE:NOK) on September 17 with a Buy rating and a $15 price target, a stance that contrasts sharply with the company's recent financial deterioration.

The firm highlighted Nokia's position in telecom infrastructure, cloud software, and hardware networking solutions, arguing that strong growth in these areas justifies the bullish outlook even as the bottom line takes a hit.

The research points to robust expansion in Nokia's networking businesses during the second quarter of 2026. Optical Networks revenue increased 20% year-over-year, while IP Networks grew 16%.

Demand from AI and cloud customers surged 105%, driven by hyperscalers purchasing Nokia's AI networking products to support large-scale computing clusters.