Ericsson: UBS lowers target price

(CercleFinance.com) - UBS maintains its neutral rating on the stock and lowers its target price for it to 69 Swedish kronor (from 78 Swedish kronor).


The analyst believes that "several unknowns remain".

Indeed, margins continue to be affected by cost increases - despite some price action, analysts believe it will take time for margins to significantly reverse their trend.

Ericsson has reported a 19% decline in Q3 operating profit at end-October, mainly due to higher procurement costs in an environment described as "inflationary".

As such, ITS gross margin fell to 41.4%, compared with 44% a year earlier, while the operating margin (Ebita) fell to 11.2%, compared with 16.5%.


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