Nokia's Shares Surge on a Wednesday
Nokia, the Finnish multinational communications and information technology company, has been selected to build a next-generation wholesale open-access fiber network in Superior, Wisconsin. The project, named ConnectSuperior, aims to provide broadband internet access to an estimated 26,000 currently underserved residents in the area.
The network will leverage Nokia's cutting-edge fiber and IP solutions, and it will not be alone in this endeavour. dMCA/LightSpeed, a privately owned telecommunications systems integrator, and ePlus, a small-cap information technology firm, are also participating in the project.
Analysts expect Nokia's Free Cash Flow (FCF) to grow north of 20% next year, which bodes well for the company's involvement in ConnectSuperior. However, specific details about the project's cost, Nokia's potential revenue, and its profitability were not disclosed in the announcement.
Nokia's current stock market valuation is near $25 billion, and the company has more than $1.7 billion in trailing-12-month free cash flow (FCF). This robust financial position, coupled with the projected growth in FCF, could make Nokia a lucrative investment opportunity.
According to S&P Global Market Intelligence, Nokia stock is probably a buy. For the stock to be considered a bargain, it needs to grow its profits at 10% or better. Despite the lack of specific information about S&P Global Market Intelligence's forecast for Nokia's free cash flow growth in the near future, the general financial outlook for the company remains positive.
Investors should also note that Nokia's dividend yield stands at 3.7%. This dividend, combined with the potential for growth, could make Nokia an attractive choice for income-focused and growth-oriented investors alike.
As the rollout of ConnectSuperior unfolds, it will be interesting to see how Nokia's involvement in this significant broadband project impacts its financial performance and stock price. Stay tuned for updates on this developing story.
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