Ericsson: Berenberg initiates coverage with 'hold' rating
(CercleFinance.com) - On Tuesday Berenberg initiated its coverage of the Ericsson stock with a "hold" rating, mainly due to a slowdown in spending in the telecom industry.
The broker says in a report that it has a "cautious, but somewhat optimistic view" on the European telecoms equipment sub-sector.
"With average revenue per user (ARPU) in the telecoms industry having fallen in virtually every region in the last 10 years, telcos have restrained their capital expenditures," Berenberg analysts write in a report, with a target price of 55 Swedish kronor for the stock.
Ericsson shares have fallen by as much as 1.3% to 52.5 Swedish kronor in morning trading today.
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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.
The broker says in a report that it has a "cautious, but somewhat optimistic view" on the European telecoms equipment sub-sector.
"With average revenue per user (ARPU) in the telecoms industry having fallen in virtually every region in the last 10 years, telcos have restrained their capital expenditures," Berenberg analysts write in a report, with a target price of 55 Swedish kronor for the stock.
Ericsson shares have fallen by as much as 1.3% to 52.5 Swedish kronor in morning trading today.
Copyright (c) 2018 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.