(CercleFinance.com) – The title is down almost 1% at the end of the day. UBS confirms its neutral advice on the value and lowers its price target to 69 Swedish crowns (vs. 78 Swedish crowns). The analyst believes that ‘several unknowns remain’.
‘Margins continue to be affected by cost increases. Despite some price action, we believe it will take time for margins to materially reverse their trend,” UBS said.
Recall that at the end of October Ericsson published an operating profit down 19% for the third quarter mainly due to an increase in its supply costs in a context described as ‘inflationary’.
The gross margin fell to 41.4%, against 44% a year earlier, while the operating margin (Ebita) fell to 11.2%, compared with 16.5%.
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