Nokia analysts say upbeat meeting will aid sector
Reuters Company News - December 05, 2000 07:26
LONDON, Dec 12 (Reuters) - Optimistic comments from mobile phone equipment maker Nokia Oyj on Tuesday will help revive investor confidence in telecoms manufacturers, said analysts attending Nokia's annual meeting for institutional investors.
They said an extended growth forecast from the world's largest handset maker and other confident remarks contributed to a very good mood at the meeting, although they said they were waiting for further details on new products and market forecasts.
"They've given slightly more bullish guidance than previously," said John Surplice, a fund manager for Perpetual, one of the UK's largest asset management companies. "They're making the right sort of noises about taking market share.
Nokia's confidence was in the face of a lot of bad sentiment towards telecoms equipment stocks, but there was "certainly a reasonable chance" that its comments could boost the entire sector, he told Reuters outside the meeting.
He was speaking after Nokia extended its revenue growth forecast of 25-35 percent a year through to 2003 and brought forward its forecast for the number of mobile phone users worldwide.
"The mood in there is very positive," said Blaine Carroll, an analyst for Adams, Harkness & Hill. It will boost sentiment in the sector, "at least for today", he added.
Susan Kalla, an analyst at U.S. brokerage Blue Stone Capital, said Nokia's confidence was "spectacular".
"They're entering a new phase of continued growth," she said. She highlighted Nokia's comments about how the strength of its balance sheet would allow it to provide financing to its network customers.
That would calm concerns over whether mobile operators would be able to pay for third-generation network equipment, she said.
"It's more or less as I expected but they're making a good case for their long-term growth," said another analyst. "This could have an effect on the whole sector, but for how long, I don't know."
Denis Gross, an analyst for Williams de Broe, said the meeting was "very optimistic".
hoovershbn.newsalert.com
/Joar |
