Ericsson: Oddo still on hold - cuts target price
(CercleFinance.com) - A few days before Ericsson's quarterly results, Oddo maintains its neutral rating on the stock, while cutting its corresponding target price from 100 Swedish kronor to 95 Swedish kronor.
While the group's results are expected to be in line with expectations - indeed, slightly above the consensus (sales of 230/240 billion Swedish kronor, vs. a consensus of 229.8 billion Swedish kronor, with an operating margin of over 10% for a consensus of 10.8%), Oddo has reduced its forecasts by 8% to 10% for 2020/2021.
The analyst mentions an updated $/SEK exchange rate, as well as the recent acquisition of Cradlepoint, which will have a dilutive effect on its margin. Oddo says that the positive effect of this transaction will only be felt once the integration synergies have been realised.
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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.
While the group's results are expected to be in line with expectations - indeed, slightly above the consensus (sales of 230/240 billion Swedish kronor, vs. a consensus of 229.8 billion Swedish kronor, with an operating margin of over 10% for a consensus of 10.8%), Oddo has reduced its forecasts by 8% to 10% for 2020/2021.
The analyst mentions an updated $/SEK exchange rate, as well as the recent acquisition of Cradlepoint, which will have a dilutive effect on its margin. Oddo says that the positive effect of this transaction will only be felt once the integration synergies have been realised.
Copyright (c) 2020 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.