Ericsson: Oddo raises target price
(CercleFinance.com) - Oddo BHF has reiterated its "outperform" rating on Ericsson shares, having increased its target price for them from 115 Swedish kronor to 120 Swedish kronor, following the release of better-than-expected quarterly results, which led the group to increase its forecasts for 2021-23.
After revision, the stock is trading at 7.5x 12-month forward EBITDA versus Nokia's 6.8x. We believen that this gap is small, as Ericsson has a better track record of gains in market share and execution than Nokia, the analyst says.
Oddo believes that Ericsson is now the easiest story to play 5G compared to Nokia, that risks surrounding the Chinese issue are now subsiding and that it is enjoying strong growth in the US.
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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.
After revision, the stock is trading at 7.5x 12-month forward EBITDA versus Nokia's 6.8x. We believen that this gap is small, as Ericsson has a better track record of gains in market share and execution than Nokia, the analyst says.
Oddo believes that Ericsson is now the easiest story to play 5G compared to Nokia, that risks surrounding the Chinese issue are now subsiding and that it is enjoying strong growth in the US.
Copyright (c) 2021 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.