Ericsson: Liberum sees no signs of improvement soon.
(CercleFinance.com) - Liberum maintains its "buy" rating on Ericsson, sticking to its target price of 52 Swedish kronor, because it sees "no signs of near term improvement.
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The brokerage firm says third-quarter results are likely to suffer from the appreciation of the Swedish krona, while operating expenditure (Opex) will remain high, with research and development (R&D) costs on new software releases.
Liberum also notes that during a call with sell-side analysts, management did not confirm the headcount reduction of 25,000 recently quoted in the press.
"We believe a structural turnaround and significant margin improvement is still some time away, and remain cautious," the broker summarizes in a research note issued today.
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.
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The brokerage firm says third-quarter results are likely to suffer from the appreciation of the Swedish krona, while operating expenditure (Opex) will remain high, with research and development (R&D) costs on new software releases.
Liberum also notes that during a call with sell-side analysts, management did not confirm the headcount reduction of 25,000 recently quoted in the press.
"We believe a structural turnaround and significant margin improvement is still some time away, and remain cautious," the broker summarizes in a research note issued today.
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.