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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: kech who wrote (26167)	8/28/2002 10:46:42 AM
From: slacker711	Respond to of 196654

No details on which 1x handsets.... investor.cnet.com Nokia Corporation* (NOK) - Buy Mark A. McKechnie 2H02 Product Ramp on the Way; Raise target to $18 Price: $13.97 52 Wk. Range: $27-11 Mkt. Cap.: $66.8 BB Target Price: 18.00 * Banc of America Securities LLC currently maintains a market in ERICY, QCOM, RFMD, TQNT, ORA.PA and otherwise purchases and sells securities of this company as principal. * September transition; December ramp. We expect a fairly significant ramp of new products over the next several quarters. The most important models include the 7650 camera phone (started in July), the 7210 high-end color phone (Q3), and the mid-range 6610 color phone (Q3). We have also seen increased order activity for Nokia’ s new cdma1x product line. * 7650 camera phone; pre-sale demand outpacing supply. Checks indicate favorable interest for the 7650 camera phone, which began shipping in July. We note that most operators (save T-Mobile) have yet to launch data-services, so we attribute today’ s demand points to heavy pre-sale interest. * Subsidies creeping back; Not the good old days, but it helps. We have begun to see a slight increase in retention subsidies by some European operators. Carriers still seem intent on reducing new subscriber acquisition costs; however, are experimenting with customer retention subsidies. As equipment analysts, we are encouraged on the margin, and believe the “retention” subsidies may help new product introductions. * Expect in-line mid-quarter update on September 10th. We expect Nokia to stick with its 0.15-0.17 guidance on sales of 7.2-7.6 bb. We believe Nokia’ s guidance for December is aggressive, but see potential upside to our 0.20 December EPS estimate on the new product ramps. * Maintain Buy. Raise target from $15 to $18. Nokia remains our top pick in the equipment space and we look for new phone traction or improved carrier health for a sustained move. Stock trades at 18x our CY03 EPS estimate of $0.76, about a 30% discount to our other large cap equipment names.