Ericsson: UBS still a seller

(CercleFinance.com) - UBS reiterates its Sell recommendation on the stock, trimming its target price to SEK 52 (from SEK 51), which now represents downside potential of -25%.


The recovery in the sector is helping the stock, but we reiterate our Sell recommendation for fundamental reasons, it says.

Ericsson's Q2 EBITA exceeded consensus by around 10%, mainly thanks to catch-up payments in the area of intellectual property rights, but also to a solid gross margin in the networks business. Based on comments on the outlook, we expect minor changes in consensus EBIT or EBITA for 24/25, UBS adds.


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