Ericsson: UBS still on hold
(CercleFinance.com) - Ericsson will record a non-cash impairment charge for Q3 2023, representing 50% of the goodwill and other intangible assets allocated to Vonage.
Following this announcement, UBS confirms its neutral rating on the stock, with an unchanged target of 58 SEK. The analyst believes that "Vonage impairment charge overshadows in-line results".
"Ericsson reported preliminary Q3'23 results with EBITA in line with guidance and consensus, however they also announced a non-cash impairment charge of SEK 32bn ($2.6bn) relating to the impairment of goodwill attributed to the Vonage acquistion..." UBS says.
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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.
Following this announcement, UBS confirms its neutral rating on the stock, with an unchanged target of 58 SEK. The analyst believes that "Vonage impairment charge overshadows in-line results".
"Ericsson reported preliminary Q3'23 results with EBITA in line with guidance and consensus, however they also announced a non-cash impairment charge of SEK 32bn ($2.6bn) relating to the impairment of goodwill attributed to the Vonage acquistion..." UBS says.
Copyright (c) 2023 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.