Nokia's stock jumps to 16-month high after settlement deal with Apple
Shares of Nokia Corp. jumped 5.1% toward a 16-month high in midday trade Tuesday, as investors cheered the news that the Finland-based network infrastructure company said it would receive and upfront cash payment and additional payments from Apple Inc. as part of the settlements of lawsuits against each other. The deal allows Apple to resume selling Nokia's digital health products in Apple stores. Canaccord Genuity analyst T. Michael Walkley raised his stock price target on Nokia to $7.00 from $5.50. Since the settlement came much sooner than his expectation that it would take "well into 2018," he added back about 250 million euro worth ($280.2 million) of licensing revenue from Apple into his estimates for 2018, leading to the higher stock price target. Walkley said the settlement also removes 100 million euro ($112.1 million) in annual legal costs. Nokia's stock, which has run up 35% year to date, was on track for the highest close since Jan. 29, 2016. In comparison, Apple's stock has rallied 33% year to date, while the Dow Jones Industrial Average has gained 6.0%.
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