Update shared on13 Oct 2025
Fair value Increased 1.06%Analysts have slightly increased their price target for Telefonaktiebolaget LM Ericsson, raising it from SEK 77.63 to SEK 78.44. Cautious outlooks on European technology hardware are partly offset by longer-term valuation support and sector-wide trends.
Analyst Commentary
Recent analyst perspectives on Telefonaktiebolaget LM Ericsson reflect a mix of caution and tempered optimism. While price targets have been revised downward in some cases, analysts continue to assess long-term valuation and sector dynamics.
Bullish Takeaways
- Valuation on 2027 estimates is seen as potentially supportive for Ericsson shares and provides a basis for longer-term stability.
- Sustained trends in artificial intelligence remain robust and offer opportunities for sector-wide growth that could benefit companies like Ericsson.
- Some bullish analysts point out that, despite near-term headwinds, Ericsson’s core business fundamentals and positioning in technology hardware support its recovery potential.
Bearish Takeaways
- Bears remain cautious on European technology hardware due to ongoing market uncertainty heading into the next quarter.
- Price targets have been lowered as analysts anticipate continued challenges in execution and a lack of clear near-term catalysts for revenue growth.
- There is a concern that, even with sector-wide advances in artificial intelligence, Ericsson and its peers have yet to see material benefits from these trends.
- Some analysts continue to see limited upside and maintain underperform or underweight ratings on the shares as competitive pressures persist.
What's in the News
- China is scaling back its use of Ericsson and Nokia equipment in domestic telecom networks. The contracts are now subject to national security reviews that place them at a disadvantage compared to local competitors (The Financial Times).
- VodafoneThree has selected Ericsson and Nokia for a GBP 2 billion contract to expand its U.S. network. Ericsson will deploy its radio access network across 10,000 sites (Bloomberg).
- Ericsson is in advanced discussions to acquire a minority stake in Intel’s newly spun-off networking and edge business and may potentially invest hundreds of millions of dollars (Bloomberg).
Valuation Changes
- Fair Value Estimate has risen slightly from SEK 77.63 to SEK 78.44.
- Discount Rate has decreased modestly from 6.55% to 6.52%.
- Revenue Growth projection has fallen slightly, changing from -0.48% to -0.57%.
- Net Profit Margin estimate has declined marginally, moving from 7.52% to 7.46%.
- Future P/E ratio forecast has increased from 17.21x to 17.56x.
Disclaimer
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