BofA Boosts Nokia Price Target to €10.70, Forecasts 17% Optical CAGR
Bank of America upgraded Nokia to Buy with a €10.70 target, applying a 30x 2027 EBIT multiple on Optical & IP Networks and forecasting 17% CAGR from AI datacenter demand. Analysts forecast Data Center switching sales of €226m in 2026 and €407m by 2028, deem Nokia’s 10-12% growth target conservative.
1. Bank of America Upgrade
Bank of America upgraded Nokia to Buy from Neutral and raised its price target from €6.87 to €10.70; the stock rose nearly 2% in Helsinki trading after the announcement.
2. Valuation Methodology
The firm adopted a sum-of-parts valuation, applying a 30x multiple on 2027 EBIT for Optical & IP Networks and a 10x multiple on the rest of the business.
3. Growth Outlook and Segment Drivers
The 2025 Infinera acquisition expanded Nokia’s exposure to U.S. cloud customers, underpinning a projected 17% CAGR in Optical Networks through 2028. Data Center switching sales are forecast at €226 million in 2026 rising to €407 million by 2028; mobile infrastructure margins are expected to expand under portfolio pruning and greater software focus.