[Elsha]

Nokia Corp. on Friday drew mixed reactions from analysts a day after it announced sweeping changes that will cut 10,000 jobs, clamp down on R&D and replace some senior executives.

Citigroup approved of the drastic moves and upgraded the embattled handset maker to neutral from sell, but cut its price target to �1.80 ($2.27).

In a research note, Citi wrote that �should Nokia NOK +5.53% execute on devices and services operating-cost target savings, Nokia could return to break-even as early as Q3, far quicker than the market anticipates.� It also said that the company still enjoys �meaningful ecosystem support from carriers globally (and Microsoft), [along with] a likely positive halo effect from Windows 8.�

Last year, Nokia adopted Microsoft Corp.�s MSFT +2.32% Windows Phone as its main operating system.

Oppenheimer & Co. cited the unknown potential of Windows 8, which is due to launch later this year. �To short here means we have 100% conviction in Windows 8 failure. To go long is to think the opposite. Right now, we just don�t know,� analyst Ittai Kidron wrote in a report. The firm upgraded the Finnish handset maker to perform and set a price target of $2.35.

On the other hand, Moody�s Investors Service downgraded its long-term credit rating from Baa3 to Ba1 � essentially junk status � noting that the company is �facing more pressure on its earnings and higher cash burn than it had previously thought,� according to Dow Jones Newswires.