Ericsson Report Points to Growth Next Year

Dow Jones
Yesterday

0813 GMT - Ericsson's third-quarter outperformance and fourth-quarter outlook points to year-on-year growth in 2027, Jefferies analyst Janardan Menon writes. Despite management's component-cost warnings, margins have held up due to mitigation measures, and Jefferies doesn't expect a material headwind in 2027 either. In addition, Ericsson's lack of AI exposure makes it resilient amid the current market scepticism on the sustainability of AI investment strength, Jefferies says. A flat radio access network market and the lack of margin upside limits earnings growth, but a new buyback program at the 2027 AGM could provide some upside, it adds. The bank reiterates its hold rating on the stock and raises its price target to 105 Swedish kronor from 98 kronor. Shares rise 1.1% to 104.85 kronor.

 

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