Goldman Sachs analyst Alexander Duval downgraded Ericsson to Sell from Neutral with a price target of $4.90, down from $6.60. The analyst meaningfully lowered estimates following the company’s Q4 results and sees downside risk Ericsson’s regional mix shift and macroeconomic headwinds. A declining wireless market and mix shift towards less profitable regions could create downside pressures on the company’s sales and margins, the analyst tells investors in a research note. In addition, the firm says recent management commentary highlighted a greater degree of macroeconomic sensitivity in 5G radio access network spending than it previously anticipated. Further, prior positive catalysts related to Ericsson’s patents negotiations with Apple have played out, writes Goldman.
Published first on TheFly
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- Ericsson price target lowered to SEK 61 from SEK 70 at Credit Suisse
- Ericsson price target lowered to SEK 60 from SEK 70 at Deutsche Bank
- Ericsson price target lowered to $8 from $10 at Cowen
- Ericsson price target lowered to $7.50 from $10.50 at Raymond James
- Ericsson reports Q4 EPS SEK 1.82 vs. SEK 3.02 last year
