Ericsson (NASDAQ:ERIC) Receives Average Rating of "Hold" from Brokerages

Key Points

• Ericsson has a consensus “Hold” rating from eight analysts: two Buys, four Holds and two Sells. The average 12-month price target is $9.00, below the stock’s reported $9.32 opening price.
• Analyst views were mixed, with Morgan Stanley downgrading Ericsson to “Underweight” and cutting its target to $9, while Danske upgraded the shares to “Buy.”
• Ericsson continues to support shareholder returns through a roughly $474 million dividend distribution and ongoing share repurchases, while new 5G agreements and technology partnerships provide potential growth support amid competitive concerns from Nokia.

Ericsson (NASDAQ:ERIC - Get Free Report) has been assigned a consensus recommendation of "Hold" from the eight research firms that are currently covering the stock, MarketBeat.com reports. Two analysts have rated the stock with a sell recommendation, four have given a hold recommendation and two have given a buy recommendation to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $9.00.

A number of analysts have recently commented on ERIC shares. Morgan Stanley downgraded Ericsson from an "equal weight" rating to an "underweight" rating and dropped their price objective for the stock from $11.00 to $9.00 in a research note on Tuesday, September 22nd. Citigroup reaffirmed a "neutral" rating on shares of Ericsson in a research note on Wednesday, July 15th. Weiss Ratings cut shares of Ericsson from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, August 28th. Finally, Danske raised shares of Ericsson from a "hold" rating to a "buy" rating in a report on Wednesday, July 15th.

Key Stories Impacting Ericsson

Here are the key news stories impacting Ericsson this week:

• Positive Sentiment: Ericsson is distributing approximately $474 million to shareholders on September 29. The payout enhances shareholder returns, although the cash distribution can also contribute to short-term trading pressure around the ex-dividend date. Ericsson Sends $474 Million to Shareholders
• Positive Sentiment: Cellnex Poland selected Ericsson to support upgrades of its 5G radio access network and tower equipment. The agreement reinforces Ericsson’s position in European 5G infrastructure and could generate additional equipment and services revenue. Ericsson to Support Cellnex’s 5G RAN Upgrades
• Positive Sentiment: Ericsson announced collaborations with Murata and Sumitomo Electric Industries focused on next-generation mobile-network technologies. The partnerships may strengthen Ericsson’s technology ecosystem and longer-term 5G/6G opportunity. Ericsson Collaborates With Murata and Sumitomo
• Positive Sentiment: Ericsson repurchased 500,000 shares during September 21–25 under its SEK 15 billion buyback program. Continued repurchases can support per-share earnings and signal management confidence in the valuation. Ericsson Share Repurchases
• Neutral Sentiment: SEB reduced its price target to SEK 120 from SEK 122 but maintained a Buy rating, indicating modestly lower near-term expectations while preserving a constructive view. SEB Lowers Ericsson Price Target
• Neutral Sentiment: Ericsson’s Japan 2035 scenarios highlight potential long-term demand from AI and connectivity, but the report does not represent a specific contract or immediate financial forecast. Ericsson Japan 2035 Scenarios
• Neutral Sentiment: Tomas Ericsson is stepping down as CEO of music-rights organization AMRA, a separate business and not an Ericsson corporate management change. Tomas Ericsson to Step Down as AMRA CEO
• Negative Sentiment: Coverage of Nokia’s new Open RAN technology contrasts with Ericsson’s less aggressive stance, potentially raising concerns about competitive positioning as operators revisit 5G spending. Nokia Open RAN Technology

Institutional Trading of Ericsson

Several institutional investors and hedge funds have recently added to or reduced their stakes in ERIC. Bank of New York Mellon Corp increased its position in shares of 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 worth $1,810,000 after acquiring an additional 12,534 shares in the last quarter. Advisors Preferred LLC purchased a new stake in shares of Ericsson in the 1st quarter valued at approximately $493,000. Atlas Capital Advisors Inc. purchased a new stake in shares of Ericsson in the 4th quarter valued at approximately $429,000. Public Employees Retirement System of Ohio boosted its stake in Ericsson by 26.3% in 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 purchasing an additional 295,185 shares during the period. Finally, BNP Paribas Financial Markets boosted its stake in Ericsson by 60.5% in the 4th quarter. BNP Paribas Financial Markets now owns 1,645,672 shares of the communications equipment provider's stock worth $15,881,000 after purchasing an additional 620,144 shares during the period. 7.99% of the stock is owned by institutional investors and hedge funds.

Ericsson Trading Down 1.1%

Shares of NASDAQ:ERIC opened at $9.32 on Wednesday. The company has a 50 day moving average of $9.98 and a 200-day moving average of $11.12. The firm has a market cap of $31.42 billion, a P/E ratio of 11.95, a P/E/G ratio of 1.74 and a beta of 0.95. Ericsson has a twelve month low of $8.10 and a twelve month 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.

Ericsson (NASDAQ:ERIC - Get Free Report) last posted its quarterly earnings data on Tuesday, June 30th. The communications equipment provider reported $0.13 earnings per share (EPS) for the quarter. Ericsson had a net margin of 10.72% and a return on equity of 20.63%. The business had revenue of $5.43 billion during the quarter. As a group, analysts anticipate that Ericsson will post 0.61 earnings per share for the current fiscal year.

Ericsson Dividend Announcement

The firm also recently disclosed a dividend, which was paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 29th were paid a $0.1579 dividend. The ex-dividend date of this dividend was Tuesday, September 29th. Ericsson's payout ratio is currently 28.21%.

Ericsson Company Profile

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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