Ericsson downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Ericsson to Neutral from Overweight with a price target of $5.90, down from $7.80. All three to U.S. telcos, namely AT&T, Verizon and T-Mobile, have indicated that they intend to cut capex in 2024 despite already reducing spending very substantially in 2023, the analyst tells investors in a research note. As such, the firm thinks the first half of 2024 is going to remain challenging for Ericsson despite the company seeing the fruits of its restructuring program announced Q4 of 2022. “The fruits mean that Ericsson stock may perform relatively better than Nokia in the short term,” it adds.