According to the latest market reports, Nokia stock in the New York Stock Exchange is seeing a rapid surge that might seem unnatural to most analysts. The price of this Finnish telecommunications and consumer technologies company pumped up by 7.24% recently.
Analyzing the current stock metrics, a research analyst from the DNB Markets, Frank Maaø, stated that Nokia stock plunged downwards during the week of the GameStop frenzy. But the growing global demand of 5G networks and the uptrend witnessed by Ericsson is pulling the stock prices of Nokia up again.
Nokia Stocks Report Rise As People Shift Base From Chinese Companies
Nokia Stock prices target also rose from an earlier $4.83 to $5.80, according to the report issued by DNB markets, the largest Norwegian Investment Bank. Frank, in his report on Nokia stock, upgraded it from “sell” to a “buy” rating. The reason for this is his belief in the ever-growing demand strength of 5G connectivity across the globe. He believes that the Northeast Asia markets will be a strong factor during the 5G upgradation cycle. The rise of Ericsson, a multinational network and telecommunications company, also shows that people are choosing these companies as preferences rather than Chinese companies.
Frank states that the main spark plug behind the increase in stock prices of companies like Nokia and Ericsson is people’s growing mistrust in Chinese companies. He surmised his point by saying that now is the time that people are testing the waters with these rising companies to move away from the Chinese market.
Ericsson, a Swedish company has grown over 2.25% since its last close, according to latest reports. The company’s CEO Borje Ekholm mentioned in a statement that their company focuses on customer well-being and prioritizes company partners.
Analysts also believe that the ongoing coronavirus pandemic has been another major reason for the price hike in Ericsson and Nokia stocks.