** AI beneficiary Nokia NOKIA.HE has been a standout gainer in Europe this year and, after doubling in value, shares in the Finnish network gear maker now trade slightly above the highest analyst price target, LSEG Datastream data show

** While 12 of 27 analysts covering Nokia recommend buying the stock, caution is creeping in, with UBS saying that tangible progress in artificial intelligence is already priced in

** "With a further €1bn in orders from Cloud/AI customers in the quarter and raised FY guidance to the Optical and IP segments, momentum is continuing to surpass our expectations. That said... we see this as priced in," says UBS, affirming its neutral rating

** Per LSEG, the highest analyst price target for Nokia stands at 11 euros; the stock closed at 11.4 euros on Monday

** Though Nokia has raised its FY expectations, the Swiss bank believes capturing AI-related opportunities remains uncertain, citing intense competition from peers Cisco CSCO.O and Ciena CIEN.N in data centre switching and pluggable optics

** "Margin expansion is expected to lag due to significant upfront investments required for scaling," UBS adds

** UBS nevertheless raises its EPS forecasts for 2026–2028 by 26–50% and doubles its target price to 11 euros

** Nokia is the second-biggest gainer on the FTSEurofirst 300 .FTEU3 YTD, up about 105%, just behind chip maker STMicro STMPA.PA, up 114%. Shares were last down 0.4% at 11.35 euros