Network Infrastructure biggest earnings driver Up till the Q4 results, the main investor focus on Nokia was the challenged outlook for the Mobile Networks business, which if anything was weaker than we expected (25/26 MN EBIT cut 40-60%). But Q4 24 results showed the importance of the NI segment with Nokia is calling the bottom there, with a recovery to come in H2 24. We have a relative preference for Nokia (=) over Ericsson (-). What do we know that we didn''t know on Tuesday? 1) Rebound to come in NI. NI revenues fell 26% y/y in Q4 23 but the surprise was Nokia guided for a strong H2 24 with a solid order book and green shoots. We expect NI''s operating profit contribution to be ~4x bigger than MN''s, ie wireline equipment is now by far the most important segment for the group. 2) MN headwinds remain. Nokia expects to lose ~EUR1bn mobile equipment revenues in India in 2024 and we estimate the ATandT contract loss will be another ~EUR0.4-0.5bn. This comes on top of a depressed market 5G RAN. By 2025 we expect EUR7bn MN revenues. 3) Better FCF. Nokia guided for an operating NWC (pre Technologies) improvement as well as EUR0.5bn cash tax pa (was EUR0.7bn). Has the investment thesis changed? No In our report Boulevard of broken dreams we argued that the overall equipment market was likely to be subdued for several years but that the outlook for wireline equipment was better than for mobile. This was clearly visible in Nokia''s downbeat assessment of the mobile RAN market but it''s far more upbeat assessment of the wireline market where all its segments were seeing a better outlook. Changes to estimates and valuation We lower 2025 operating profit 13% to reflect much lower Networks revenues, but our OpCF increases 17% as we reduce our tax and NWC drag. As a result, we raise our DCF-derived TP to EUR3.7 from EUR3.4. The 2025 PE is a pedestrian 10x but on an EV/EBIT basis it trades at a more attractive 6x vs US commtech peers closer to 10x.