Ericsson: Oddo BHF reduces target price
(CercleFinance.com) - Oddo BHF maintains its "underperform" rating on Ericsson shares, with a target price reduced from 45 SEK to 42 SEK, after its quarterly results.
The analyst has reduced EPS estimates by an average of 20% for 2023 & 2024.
The broker says that a recovery is going to take longer than expected - in both growth and profitability, adding that no signs of recovery are visible at the moment.
For the record, yesterday Ericsson reported sales of 64.5bn SEK, down 10% organically, with a gross margin of 39.2% and an EBITA margin of 7.3%.
The broker concludes that management is cautious about Q4 23 and beyond. The near-term outlook remains uncertain due to the decline in operators' Capex and the continued normalisation of inventory levels in industry in Q4.
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