Ericsson: Jefferies upgrades stock

(CercleFinance.com) - Jefferies announced on Friday that it had upgraded its recommendation on Ericsson shares to Buy, with a target price raised from 58 SEK to 70 SEK.


The broker - which at the same time downgraded Nokia shares - justifies its decision by the fact that AT&T has chosen the Swedish group to modernize its mobile network.

In Jefferies' opinion, this choice could represent an "inflection point" for the telecom equipment manufacturer, enabling it to grow both sales and profit margins from 2024 onwards.

This agreement could also open the door to other contracts in 'Open RAN' technology.

The analyst adds that Ericsson's increased presence in the US should also have a positive effect on its geographical mix, which has until now made it dependent on low-margin 5G projects in India.

He believes that the stock's current valuation is attractive and has real upside potential.


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