Update shared on19 Sep 2025
Fair value Decreased 1.30%Analysts have lowered their price target for Ericsson to SEK77.62, citing sector-wide uncertainty, subdued near-term growth prospects, and a lack of direct AI benefits compared to peers.
Analyst Commentary
- Bearish analysts remain cautious on European technology hardware, including Ericsson, heading into Q3 due to sector-wide uncertainty.
- Lowered price targets reflect ongoing concerns about Ericsson’s near-term growth prospects and persistent headwinds within the industry.
- Current valuations based on 2027 estimates may provide some share price support, but are not enough to offset short-term challenges.
- Despite continued strength in artificial intelligence sector trends, analysts see minimal direct benefit accruing to Ericsson.
- Preference in the sector is given to companies like TSMC over Ericsson, with analysts favoring peers based on competitive positioning.
What's in the News
- Ericsson is in advanced talks to invest hundreds of millions of dollars as a minority stakeholder in Intel’s newly spun-off networking and edge business (Nex), strengthening a long-standing relationship and securing supply for its radio access network hardware (Bloomberg, Key Developments).
- Ericsson, AstraZeneca, Saab, SEB, and Wallenberg Investments are jointly launching Sferical AI, a company that will operate a Swedish sovereign AI supercomputer infrastructure based on NVIDIA technology, aiming to transform Sweden’s industrial competitiveness in AI (Key Developments).
- Ericsson collaborated with GlobalLogic and Hitachi Rail to implement a 5G private network at Hitachi's Maryland facility, enabling next-generation industrial automation, digital twins, and enhanced worker safety, setting a benchmark for smart manufacturing (Key Developments).
- Ericsson expanded its partnership with SoftBank Corp. in Japan, signing a new commercial agreement to supply 4G and 5G radio equipment across several regions, supporting expanded 5G Standalone coverage, advanced automation, and AI-driven operational enhancements (Key Developments).
- Bharti Airtel and Ericsson deepened their longstanding partnership in India, with Ericsson supporting Airtel's Fixed Wireless Access (FWA) rollout via enhanced core network solutions and a new platform, reinforcing their joint commitment to India’s digital transformation (Key Developments).
Valuation Changes
Summary of Valuation Changes for Telefonaktiebolaget LM Ericsson
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from SEK78.65 to SEK77.62.
- The Discount Rate for Telefonaktiebolaget LM Ericsson has risen slightly from 6.30% to 6.55%.
- The Future P/E for Telefonaktiebolaget LM Ericsson remained effectively unchanged, moving only marginally from 17.32x to 17.21x.
Disclaimer
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