(CercleFinance.com) – AlphaValue renewed its buy recommendation on Ericsson on Thursday the day after the Swedish telecom equipment manufacturer disclosed a corruption scandal in Iraq.
According to the independent consultancy, which also maintains its price target of 139 crowns on the value, the situation is hardly encouraging.
AlphaValue recalls that Ericsson had been severely sanctioned by the American authorities in 2019 for similar acts of corruption which concerned countries such as China, Vietnam, Indonesia and Kuwait.
‘The factor that concerns us is that Iraq is not on this list, which means that the American stock market policeman (SEC) is not aware of these irregularities’, he worries. .
‘If the United States decided to backtrack and look into Ericsson – whose first customer is American – this problem which was supposed to have no stock market consequences (apart from ESG factors) could turn into a significant fine or a boycott’, warns the Parisian cabinet.
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