Nokia's share price is showing signs of weakness this Friday on the Paris Bourse, in the wake of a downgrade by Barclays to 'underweight' from 'in-line weighting'.

Shortly before 12:00 p.m., the Finnish network equipment supplier's share price fell by 1.7%, while the STOXX Europe 600 Telecommunications European telecoms sector index lost less than 0.1% at the same time.

Barclays, which lowered its target price from 4.6 to three euros, said it was concerned about the market's health after telecom equipment manufacturers' radio access network (RAN) business in North America fell by almost half last year.

We believe that this down cycle is not over, with 5G base station data pointing to a major slowdown in India", explain Barclays analysts.

From the research firm's point of view, AT&T's recent decision to opt for 'open' network technologies (Open RAN) risks posing long-term structural problems for the sector.

In this context, Barclays has also decided to downgrade its recommendation on Sweden's Ericsson to 'underweight'.

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