Ericsson: Liberum still says 'Buy'

(CercleFinance.com) - Liberum maintains its "buy" rating on the Ericsson share, along with its target price of 101 Swedish kronor (25% upside) expecting the group to comfortably reach its overall operating margin targets in 2020 and 2022.


"Ericsson has signalled an increase in operating expenses which along with possible gross margin pressure from the Chinese 5G rollout could move Networks operating margins in 2020 to the low end of the targeted 15%-17% range," the broker notes.

"However, recent history has shown that increased investments have paid off for Ericsson in terms of achieving technological leadership and reducing costs," Liberum continues, which highlights the group's Digital Services.


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