Ericsson: Credit Suisse upgrades to 'neutral', ups target.

(CercleFinance.com) - Credit Suisse has upgraded Stockholm-based telecoms equipment maker Ericsson to "neutral" from "underperform" and has raised its target price to 57 Swedish kroner from 46 Swedish kroner.


The broker believes the stock's risk-reward ratio is "fairly balanced" at current levels in the light of the group's renewed strategy.

"While we acknowledge near term headwinds for Ericsson (...), there seems to be more urgency around improving profitability," said Credit Suisse in a note.

According to the broker, this may lead to certain asset disposals or the closure of loss-making businesses, which could improve the group's margins starting from late second-half 2017.

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