Bank of America Cuts EPS & PO On Nokia Following Symbian Business Decline

Bank of America has published a research report on Nokia NOK after cutting EPS estimates following a steep decline in Nokia's Symbian business. In the report, Bank of America writes "We cut EPS 52% and 41% in 2011E and 2012E on the back of a steeper decline in Nokia's Symbian business than expected, following the 31 May pre-announcement. The problem for Nokia is a mis-execution in China, lack of CDMA and Symbian – the latter two meaning weak portfolio for now which we expected, but it is worse than expected. We are not changing our assumption on the Windows Phone launch (Nokia now confirms Q4) and ramp of high ASP product through 2012 which we believe will drive device operating margins to over 10% again by 2013E aided by the €1bn/yr opex cut over that period (which we assume costs €0.4bn)." Bank of America has cut its price objective from $17 to $12 and maintains its Buy rating. Nokia closed yesterday at $7.02.