Jefferies rated Nokia (OTC: NOKBF) stock a buy on AI data center growth, and profit margin boost

Jefferies has upgraded Nokia Oyj (OTC: NOKBF) to “buy” from “hold” and lifted its price target to €6.60 from €4.50, pointing to rising exposure to artificial intelligence-driven data center demand.

The brokerage said the Finnish telecom equipment maker is moving “from a predominantly Radio Access-centric business struggling for growth, to one where rising AI data centre exposure … is expected to drive steady growth.”

The brokerage said Nokia’s valuation could “re-rate to the high-teens on the back of a consistent growth outlook in Network Infrastructure,” with gross margins forecast to rise to 45% in 2026 and 46% in 2027.