Should Nokia's Four-Year TNN 5G Contract Extension Matter to Nokia Oyj (HLSE:NOKIA) Investors?

• Nokia has secured a four-year contract extension as the sole supplier of 5G radio access networks and managed services for TNN, Denmark's largest shared mobile network and a joint venture between Norlys and Telenor.
• This agreement highlights Nokia's continued commercial strength in Europe and showcases its deployment of AI-driven, energy-efficient network technologies to expand coverage for over three million subscribers.
• We'll examine how the TNN contract extension, with its advanced AI and automation features, could influence Nokia's investment narrative.

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Nokia Oyj Investment Narrative Recap

For shareholders, the core thesis behind Nokia rests on its capacity to harness global 5G and network modernization trends while navigating intense competitive pressures and capitalizing on growing digital infrastructure spending. The recently announced four-year extension with TNN in Denmark reinforces Nokia’s commercial traction in advanced networks, but is not expected to meaningfully change the most important short-term catalyst: a turnaround in Mobile Networks revenue and margins. Risks from ongoing competition and price pressures in this segment remain front and center.

Among recent news, Nokia’s expanded partnership with SoftBank in Japan stands out, as it involves deploying advanced AirScale 4G and 5G radio access equipment and integrating AI-enabled network management, echoing the TNN deal’s emphasis on energy-efficient, next-generation technology. This alignment suggests that the company’s focus on innovation and efficiency continues to underpin growth catalysts, particularly as it seeks to stabilize and expand its core network businesses.

However, investors should not overlook that, despite contract wins, the persistent risk of market share erosion in Mobile Networks could limit Nokia’s improvement in net margins if...

Read the full narrative on Nokia Oyj (it's free!)

Nokia Oyj's outlook anticipates €21.0 billion in revenue and €1.7 billion in earnings by 2028. This projection relies on a 3.0% annual revenue growth rate and an increase in earnings of approximately €791 million from the current €909 million.

Uncover how Nokia Oyj's forecasts yield a €5.29 fair value, a 12% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided six fair value estimates for Nokia ranging from €2.06 to €5.75 per share, reflecting broad opinion diversity. With ongoing margin pressures in Mobile Networks, consider how market share shifts could influence both upside and downside scenarios for the stock.

Explore 6 other fair value estimates on Nokia Oyj - why the stock might be worth as much as €5.75!

Build Your Own Nokia Oyj Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Nokia Oyj research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Nokia Oyj research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nokia Oyj's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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