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Ericsson: Liberum still a buyer on CEO change rumours

(CercleFinance.com) - Liberum reiterates its "buy" recommendation on the Ericsson share, with a target price of 101 Swedish kronor, in reaction to rumours of a CEO change.

According to the Swedish newspaper Dagens Industri, Ericsson's CEO, Borje Ekholm, could announce his resignation over the next six months, with Saab CEO Hakan Buskhe set to succeed him.

"Ericsson told us that the report is speculative and a surprise to them," Liberum wrote in a note.

However, the British broker said it would not entirely disregard the report, given Buskhe's recent announcement that he plans to leave Saab by February 2020 to face "another operational challenge".

"Even if true, Saab's strong operational and share price performance under Mr. Buskhe's leadership does not provide Ericsson's shareholders with cause for concern," Liberum added.

The broker noted that since Ericsson's share price has been falling since its second-quarter, its valuation has become "attractive".

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