- (PLX AI) - Ericsson and Nokia are likely to underperform as the 5G cycle matures and margins peak, analysts at Bank of America said.
- • Both companies have limited multiple expansion potential and faces intense competition, BofA said
- • Nokia is likely to see a 5G RAN market peaking this year and gradually declining through 2025: BofA
- • Ericsson is likely to see peaking Network margins and IPR revenues decline, the analysts said
- • Nokia price target of EUR 4.33 implies 15% downside
- • Ericsson price target of SEK 91 implies implies 9% downside
- • Nokia was down 2% in early trading, with Ericsson down 1.3%