Ericsson: restructuring story still intact, Bernstein says.
(CercleFinance.com) - Sanford C.
Bernstein maintains its "outperform" rating on Ericsson, with a target price of 80 Swedish kronor, saying the group's restructuring story remains "intact" despite challenging market developments ahead.
After the Swedish telecoms equipment maker published quarterly results that are below expectations this morning, the brokerage firm notes that most of the disappointment comes from activities that will be sold.
Ericsson itself has highlighted a risk of further market and customer project adjustments, Bernstein adds, which means investors should expect worse performance this year.
Although execution uncertainty remains, the market now has better visibility on the company's plans, the broker writes in a research note.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Bernstein maintains its "outperform" rating on Ericsson, with a target price of 80 Swedish kronor, saying the group's restructuring story remains "intact" despite challenging market developments ahead.
After the Swedish telecoms equipment maker published quarterly results that are below expectations this morning, the brokerage firm notes that most of the disappointment comes from activities that will be sold.
Ericsson itself has highlighted a risk of further market and customer project adjustments, Bernstein adds, which means investors should expect worse performance this year.
Although execution uncertainty remains, the market now has better visibility on the company's plans, the broker writes in a research note.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.