Ericsson: Credit Suisse now a seller
(CercleFinance.com) - On Thursday Credit Suisse downgraded Ericsson shares to "underperform" from "outperform", slashing its target price for them to 69 Swedish kronor (from 113 Swedish kronor).
In its comments, the broker explains that the telecom equipment manufacturer will have to face a weakening of its revenue growth against the backdrop of a deteriorating economic situation.
In addition, the broker says that inflationary pressures and investments in R&D suggest that results will be lacklustre until 2024.
Finally, the broker mentions limited visibility on future fines that could be imposed by the US Department of Justice and the SEC, which have led it to find other more interesting opportunities elsewhere.
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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.
In its comments, the broker explains that the telecom equipment manufacturer will have to face a weakening of its revenue growth against the backdrop of a deteriorating economic situation.
In addition, the broker says that inflationary pressures and investments in R&D suggest that results will be lacklustre until 2024.
Finally, the broker mentions limited visibility on future fines that could be imposed by the US Department of Justice and the SEC, which have led it to find other more interesting opportunities elsewhere.
Copyright (c) 2022 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.