Why Nokia Stock Spiked 23% Today

Nokia Oyj NOK rose nearly 23% in the regular and after-hours sessions on Monday.

What Happened: Nokia shares surged in part due to the efforts of r/wallstreetbets — a Reddit group with 2.1 million users — but another likely factor is a bullish report from SEB, a Swedish analyst company.

See also: How To Buy Nokia Stock

The Reddit forum caused a short squeeze in the stocks of several companies including Nokia, gaming retailer GameStop Corp. GME, and BlackBerry Ltd. BB.

SEB, one of the largest financial institutions in Scandinavia raised its price target on Nokia from $4.25 to $4.60 per share and reiterated its Buy rating, the Motley Fool reported Monday.

The analyst firm said that Nokia’s stock is undervalued in comparison with Swedish-rival Telefonaktiebolaget LM Ericsson ERIC.

Ericsson stock closed 3.38% higher at $12.23 on Monday.

Why It Matters: Nokia is a leader in 5G, a technology in focus for the foreseeable future.

SEB expects Nokia to restore dividends and is positive on the company’s fourth-quarter earnings report due Feb. 4, the Fool noted.

Price Action: Nokia shares closed nearly 15.5% higher at $4.85 and ran up 7.22% in the after-hours to $5.20.