Ericsson: Berenberg retains 'hold' rating

(CercleFinance.com) - German equity house Berenberg retains a "hold" rating on Ericsson, with a price target of 65 Swedish kronor, after the Swedish telecoms gear maker reported a "solid" second-quarter.


The Stockholm-based firm has posted an operating profit 16% above consensus, driven by strong sales growth in North America and improved gross margin and cost cutting, the broker said.

"While this indicates solid management execution of the turnaround plan, we believe that structural challenges remain in place and that any positive impact from 5G rollouts is years away", Berenberg noted.

"As such, we would not be chasing the shares at these levels", it added in a research note.

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