Ericsson: shares rise after Barclays upgrade
(CercleFinance.com) - Shares of Ericsson rose over 2% in afternoon trading on Thursday after Barclays upgraded the stock from "equal weight" to "overweight".
Telecom equipment remains a tough neighbourhood, the broker pointed out, but Ericsson is executing better and is unloved, it wrote in a report about the European technology hardware industry.
Despite consistent execution, Ericsson struggled last year, gaining just 10% which is less than other names in the sector, Barclays noted, while also citing "increased confidence" in the group's 2020/2022 targets.
Furthermore, the stock is cheap, it wrote in the report, raising its target price from 100 Swedish kronor to 105 Swedish kronor.
Ericsson shares are currently up 2.2% at 85 Swedish kronor.
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