Ericsson (NASDAQ:ERIC) Given New $10.20 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan lowered Ericsson’s price target from $11.40 to $10.20 while maintaining a “neutral” rating, implying approximately 7.37% upside from the $9.50 share price.
• Analyst sentiment remains mixed but leans toward “Hold”: two analysts rate Ericsson a Buy, five a Hold and two a Sell, with a consensus price target of $9.60.
• Ericsson reported quarterly revenue of $5.43 billion and EPS of $0.13, while its stock remains below both its 50-day and 200-day moving averages; institutional investors own 7.99% of shares.

Ericsson (NASDAQ:ERIC - Get Free Report) had its price target reduced by analysts at JPMorgan Chase & Co. from $11.40 to $10.20 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage presently has a "neutral" rating on the communications equipment provider's stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 7.37% from the stock's current price.

Other research analysts have also recently issued reports about the company. Danske upgraded Ericsson from a "hold" rating to a "buy" rating in a report on Wednesday, July 15th. Weiss Ratings cut Ericsson from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, August 28th. Morgan Stanley downgraded Ericsson from an "equal weight" rating to an "underweight" rating and reduced their target price for the company from $11.00 to $9.00 in a research report on Tuesday, September 22nd. Finally, Citigroup reiterated a "neutral" rating on shares of Ericsson in a report on Wednesday, July 15th. Two analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Ericsson has a consensus rating of "Hold" and a consensus price target of $9.60.

Ericsson Trading Up 0.4%

Shares of ERIC traded up $0.04 during mid-day trading on Thursday, reaching $9.50. The stock had a trading volume of 9,351,930 shares, compared to its average volume of 10,373,025. Ericsson has a 52-week low of $8.12 and a 52-week high of $13.77. The firm has a market cap of $32.02 billion, a price-to-earnings ratio of 12.18, a P/E/G ratio of 1.74 and a beta of 0.96. The business's fifty day moving average is $9.95 and its 200 day moving average is $11.02. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.12 and a quick ratio of 0.89.

Ericsson (NASDAQ:ERIC - Get Free Report) last issued its earnings results on Tuesday, June 30th. The communications equipment provider reported $0.13 EPS for the quarter. Ericsson had a net margin of 10.72% and a return on equity of 20.63%. The company had revenue of $5.43 billion for the quarter. On average, sell-side analysts predict that Ericsson will post 0.61 EPS for the current fiscal year.

Institutional Investors Weigh In On Ericsson

A number of hedge funds have recently added to or reduced their stakes in the business. Public Employees Retirement System of Ohio increased its position in shares of Ericsson by 26.3% during the first quarter. Public Employees Retirement System of Ohio now owns 1,418,076 shares of the communications equipment provider's stock worth $15,982,000 after acquiring an additional 295,185 shares during the period. Bank of New York Mellon Corp boosted its holdings in Ericsson by 8.5% in the first quarter. Bank of New York Mellon Corp now owns 160,581 shares of the communications equipment provider's stock valued at $1,810,000 after purchasing an additional 12,534 shares during the period. Advisors Preferred LLC purchased a new position in Ericsson in the first quarter valued at $493,000. Finally, Atlas Capital Advisors Inc. acquired a new position in Ericsson during the 4th quarter worth $429,000. 7.99% of the stock is currently owned by institutional investors and hedge funds.

Ericsson News Summary

Here are the key news stories impacting Ericsson this week:

• Positive Sentiment: 6G and AI positioning: Ericsson is competing with Nokia and Huawei to shape the architecture of 6G core networks, with artificial intelligence emerging as a key differentiator. Leadership in next-generation network standards could support long-term equipment demand and strengthen Ericsson’s strategic position. Ericsson and Nokia battle Huawei in 6G core clash over AI
• Positive Sentiment: India manufacturing expansion: Ericsson has begun exporting antennas made in India to Europe and other global markets. The move highlights India’s growing role in Ericsson’s supply chain, may improve manufacturing efficiency, and could create a platform for future 5G and 6G product growth. Several reports also describe the antennas as AI-ready and tied to Ericsson’s next-generation network strategy. Ericsson to export India-made antennas to Europe
• Neutral Sentiment: Earnings approaching: Ericsson is expected to announce quarterly results on Thursday. The report is the most immediate potential catalyst, as investors will look for evidence that profitability, revenue and telecom-equipment demand are improving. The company most recently reported quarterly revenue of $5.43 billion and EPS of $0.13. Ericsson expected to announce quarterly earnings
• Neutral Sentiment: Peer comparison: A new analysis compares Ericsson with Arista Networks, offering investors additional context on valuation, financial strength and growth prospects, but it does not represent a direct change to Ericsson’s outlook. Ericsson versus Arista Networks critical comparison

About Ericsson

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a Swedish telecommunications and technology company that provides communications infrastructure, software, and related services to telecommunications operators and enterprises worldwide. The company was founded in 1876 by Lars Magnus Ericsson and is headquartered in Stockholm, Sweden.

Ericsson's offerings include mobile network equipment and services for 4G and 5G networks, radio access systems, core networks, transport solutions, and network management software.

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