Ericsson: UBS raises price target
(CercleFinance.com) - UBS has raised its price target for Ericsson from 86 Swedish kronor to 102 Swedish kronor on Friday, citing "tailwinds" for the business into 2021.
The broker said in a note to clients that the telecom gear maker is benefiting from strong execution and market share gains as Chinese rival Huawei faces supply chain challenges.
"However, despite these tailwinds into 2021 and the continued strong management execution, with the rising momentum among operators of OpenRAN and it's potentially disruptive effects on the business we believe the stocks multiple will likely remain constrained", UBS wrote in its report.
Seeing "limiting" upside and a balanced risk/reward profile from here, UBS maintained its "neutral" rating on the stock.
Many analysts warn that Open RAN acceleration will be a key factor in technology infrastructure in the coming years, with big implications for market leader Ericsson.
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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 said in a note to clients that the telecom gear maker is benefiting from strong execution and market share gains as Chinese rival Huawei faces supply chain challenges.
"However, despite these tailwinds into 2021 and the continued strong management execution, with the rising momentum among operators of OpenRAN and it's potentially disruptive effects on the business we believe the stocks multiple will likely remain constrained", UBS wrote in its report.
Seeing "limiting" upside and a balanced risk/reward profile from here, UBS maintained its "neutral" rating on the stock.
Many analysts warn that Open RAN acceleration will be a key factor in technology infrastructure in the coming years, with big implications for market leader Ericsson.
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.