Nokia "sell"

07/18/05 - Dresdner Kleinwort Wasser.

LONDON, July 18 (newratings.com) - Analysts at Dresdner Kleinwort Wasserstein maintain their "sell" rating on Nokia (NIA-EUR). The target price is set to €12.60.

In a research note published this morning, the analysts mention that the company witnessed a significant gross margin decline during 1Q05 in its mobile phones segment. The analysts believe that Nokia's toughest challenge in the forthcoming quarters would be to sustain its pricing power in the mobile phone market, despite stiff competition and product commoditisation.