Ericsson: Credit Suisse cuts target price
(CercleFinance.com) - Crédit Suisse reiterates its "outperformance" rating on the Ericsson share, while reducing its corresponding target price from 130 Swedish kronor to 120 Swedish kronor, after reducing its sales and operating profit estimates for 2021 and 2022.
The broker justifies this cut in its target price by the dollar's recent weakness against the Swedish krona, as well as by potential delays in intellectual property income renewals.
Nevertheless, analysts believe that Ericsson "remains on track to benefit from pockets of growth in 5G, the ongoing need to upgrade 4G due to rising data traffic, strong 5G deal momentum, along with optionality around share gains from Huawei".
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