Ericsson: Oddo BHF reduces target price
(CercleFinance.com) - Oddo BHF maintains its "underperform" rating on Ericsson shares, with a target price reduced from 45 SEK to 42 SEK, after its quarterly results.
The analyst has reduced EPS estimates by an average of 20% for 2023 & 2024.
The broker says that a recovery is going to take longer than expected - in both growth and profitability, adding that no signs of recovery are visible at the moment.
For the record, yesterday Ericsson reported sales of 64.5bn SEK, down 10% organically, with a gross margin of 39.2% and an EBITA margin of 7.3%.
The broker concludes that management is cautious about Q4 23 and beyond. The near-term outlook remains uncertain due to the decline in operators' Capex and the continued normalisation of inventory levels in industry in Q4.
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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 analyst has reduced EPS estimates by an average of 20% for 2023 & 2024.
The broker says that a recovery is going to take longer than expected - in both growth and profitability, adding that no signs of recovery are visible at the moment.
For the record, yesterday Ericsson reported sales of 64.5bn SEK, down 10% organically, with a gross margin of 39.2% and an EBITA margin of 7.3%.
The broker concludes that management is cautious about Q4 23 and beyond. The near-term outlook remains uncertain due to the decline in operators' Capex and the continued normalisation of inventory levels in industry in Q4.
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.