** Morgan Stanley raises Finnish telecoms equipment maker Nokia NOKIA.HE to "overweight" from "equal-weight" on AI-driven demand
** Nokia's revenues from AI & Cloud are relatively small, accounting for about 6% of group revenues, but they are "growing rapidly fuelled by the data center construction boom" - MS
** Stock up 1.6% at 0808 GMT
** MS highlights Nokia's partnership with NVIDIA NVDA.O, which holds a 3% stake, and strong demand in optical networking as key catalysts
** Nokia's valuation is not fully reflective of the pivot to AI, says the brokerage
** MS also notes geopolitical trends favouring Western suppliers of critical infrastructure, stabilisation in the mobile networks division as positive factors
** Out of the 28 analysts covering the stock, 16 rate it "strong buy" or "buy", seven "hold", and five "sell" or "strong sell" - LSEG
(Reporting by Vera Dvorakova)
((vera.dvorakova@thomsonreuters.com))
Comments