A few NOK numbers:
EPS is projecting at 35% growth FY17 vs FY16 (33 cents vs. 19)
They've exceeded estimates the past 2 quarters but have tempered their forward views, from the look of it. Analysts are currently projecting FY18 to be flat with FY17 but the high end estimate is projecting 25% EPS growth in FY18 and 46 cents/share.
A 20 PE at $.40/share targets to $8/share or roughly a 75% gain from today's price. (7 cents gain in FY18 vs, 33 in FY17 is a 20% EPS growth rate).
A 25 PE at $.46/share targets to $11.50 (and would be 40% yoy EPS growth rate in FY18).
Revenue is supposed to be flat to slightly down in FY18, so if NOK is to achieve anything close to the high end estimate targets, they will need to continue to improve their margins and limit SGA/RD spend and (of course) possibly grow revenue.
FWIW...buyer beware and all that jazz....
One note is the strong patent portfolio that NOK holds, which could be worth a substantial premium over today's price. Also, they offer close to a 4% dividend yield, at least that is the expected rate going forward ($0.18/sh).
Lastly, they appear to have really struggled with the ALA/LU acquisition, which should come as no surprise to anyone. However, they are getting closer to the point where one would expect to start seeing better results, on a timing basis. Synergies aren't always quick to surface but often start to kick in when everyone is the most negative based on looking at the past performance vs. future potential.
JMO.... |
