In a recent analysis by Jefferies, the technology, media, and telecom market is expected to present challenges for Nokia (NYSE:NOK) in the near term due to regional shifts affecting mobile network margins. This comes after a significant 45% drop in Nokia's Q3 sales in India, with sub-seasonal growth predicted for Q4.
On the other hand, North American sales remained steady in Q3 and are anticipated to rise in the upcoming fourth quarter. This is expected to mark the end of an inventory correction period. According to Jefferies, a forecasted rebound in North America in 2024 versus a decline in India could positively impact Nokia's margins.
Despite these challenges, Jefferies has maintained a buy rating on Nokia's stock. However, they have reduced their price target from EUR4.50 to EUR4.10. The affirmation of the buy rating suggests that Jefferies believes Nokia will navigate these regional shifts and maintain its position in the market.
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