Ericsson: Oddo confirms its advice on the title


(CercleFinance.com) – Oddo maintains its ‘underperformance’ rating on Ericsson shares, with an unchanged price target of 60 SEK, following the investor day (CMD) organized yesterday in New York by Ericsson.

The analysis office reports that the group reiterated its long-term objective there (i.e. to achieve an EBITA margin of 15 to 18% by 2024, ‘which the consensus does not validate until then’, specifies Oddo .

‘We still believe that the context of the telecom equipment market is deteriorating and that 2023 will be a tougher year, both in terms of growth and profitability, despite the announced new savings of SEK 9 billion by the end of 2023 ‘, indicates the analyst.

After record levels of investment in the United States in 2022, Capex should normalize from Q4 22, until the end of 2023, for a stabilization expected from 2024, reports Oddo.

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