Ericsson (NASDAQ:ERIC) Stock Moved Up to Buy by Wall Street Zen

Key Points

• Wall Street Zen upgraded Ericsson to “buy” from “hold,” but broader analyst sentiment remains cautious: MarketBeat reports a consensus “hold” rating and an average price target of $9.60.
• Ericsson’s latest quarterly results exceeded expectations, with EPS of $0.18 versus the $0.14 consensus and revenue of $5.94 billion, up 5.8% year over year.
• Shares opened at $10.55, while the company’s Networks business continued to drive growth; however, rising component costs could pressure margins and prompt customer price increases in 2027.

Ericsson (NASDAQ:ERIC - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday, Wall Street Zen reports.

Other equities research analysts have also issued research reports about the stock. Danske lowered shares of Ericsson from a "buy" rating to a "hold" rating in a research note on Friday. Weiss Ratings downgraded shares of Ericsson from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, August 28th. Morgan Stanley lowered Ericsson from an "equal weight" rating to an "underweight" rating and cut their price objective for the stock from $11.00 to $9.00 in a report on Tuesday, September 22nd. Citigroup reiterated a "neutral" rating on shares of Ericsson in a report on Wednesday, July 15th. Finally, JPMorgan Chase & Co. lowered their target price on Ericsson from $11.40 to $10.20 and set a "neutral" rating on the stock in a research note on Thursday, October 8th. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $9.60.

Ericsson Stock Down 1.5%

Shares of Ericsson stock opened at $10.55 on Friday. The company has a market cap of $35.56 billion, a P/E ratio of 15.09, a P/E/G ratio of 1.90 and a beta of 0.96. Ericsson has a 1 year low of $9.03 and a 1 year high of $13.77. The company has a current ratio of 1.12, a quick ratio of 0.89 and a debt-to-equity ratio of 0.21. The stock has a 50-day moving average price of $9.92 and a 200 day moving average price of $10.95.

Ericsson (NASDAQ:ERIC - Get Free Report) last posted its quarterly earnings results on Thursday, October 15th. The communications equipment provider reported $0.18 EPS for the quarter, topping the consensus estimate of $0.14 by $0.04. Ericsson had a net margin of 8.31% and a return on equity of 21.03%. The business had revenue of $5.94 billion during the quarter, compared to analysts' expectations of $5.59 billion. During the same period last year, the company posted $1.37 earnings per share. The firm's quarterly revenue was up 5.8% compared to the same quarter last year. As a group, analysts expect that Ericsson will post 0.63 EPS for the current fiscal year.

Institutional Trading of Ericsson

Institutional investors and hedge funds have recently made changes to their positions in the stock. Public Employees Retirement System of Ohio boosted its stake in shares of Ericsson by 26.3% during the 1st 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 in the last quarter. Bank of New York Mellon Corp boosted its holdings in Ericsson by 8.5% during 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 acquiring an additional 12,534 shares during the period. Finally, Advisors Preferred LLC bought a new stake in Ericsson during the 1st quarter valued at approximately $493,000. Institutional investors and hedge funds own 7.99% of the company's stock.

More Ericsson News

Here are the key news stories impacting Ericsson this week:

• Positive Sentiment: Q3 results exceeded expectations. Ericsson reported approximately 7% organic sales growth, driven by its Networks business, while adjusted gross margin reached 47.7%. Earnings of $0.18 per share surpassed the $0.14 consensus estimate, supporting the sharp rally following the report. Why Ericsson Stock Soared Today
• Positive Sentiment: Networks demand remains a key growth driver. Reported sales rose about 6% year over year to SEK 59.5 billion, with the Networks segment posting roughly 9% organic growth. This indicates continued customer spending on mobile-network infrastructure. Ericsson shares gain after 7% organic sales growth
• Positive Sentiment: Ericsson and Verizon completed a notable 6G milestone. The companies conducted what they described as the first outdoor pre-standard 6G field call in the 7 GHz band at a commercial site in California. The test provides long-term validation of Ericsson’s technology, although 6G is still years from meaningful revenue contribution. Verizon and Ericsson Accelerate 6G Development
• Neutral Sentiment: Management is simplifying the organization. Ericsson will combine parts of its Asia-Pacific operations and redistribute its Enterprise Wireless Solutions portfolio to improve efficiency, leverage research and development, and capture synergies. The changes may reduce costs but also involve executive transitions and portfolio disruption. Ericsson announces simplification of Group structure
• Negative Sentiment: Higher component costs are the main near-term concern. AI-related demand is raising chip and equipment costs, creating a margin headwind next year. Ericsson expects to pursue structural customer price increases in 2027, but investors may question how quickly those increases can offset inflation without hurting demand. Ericsson braces for component cost hit

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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