Why Nokia Could Get Bought Out - Seeking Alpha

Opportunistic firms bigger in size than Nokia may also find ways to unlock the company’s value.

So, besides the possibility of getting bought out, there are several reasons why investors should still accumulate Nokia shares.

The Defense Department awarded several companies with $600 million worth of contracts.

Nokia is one of many companies involved in the “5G strategy.” This plan incorporates 5G technologies in warfighters.

Previously, Verizon (VZ) famously awarded Samsung (SSNLF) 5G contracts, which hurt Nokia stock.

Yet, Nokia offers a better price point and better 5G delivery.

At a recent close at $4.20, Nokia is worth $23.5 billion by market capitalization.

I previously wrote that Ericsson is a better stock than Nokia (link for premium subscribers or DIY members).

In this context, Nokia has better quant factor grades that suggest a suitor will recognize its undervaluation.

On September 29, Nokia signed a deal to supply BT with 5G RAN.

Nokia will supply equipment and services at BT’s radio sites.

Seasonality also works against Nokia shares for the next two months and the first half of 2021:

An American firm seeking to capitalize on 5G may buy Nokia for around $9.00

In the near term, Nokia stock may continue its rebound from the $4.00 support line, ahead of the earnings report