- (PLX AI) - Ericsson is expected to report strong first-quarter earnings but the U.S. DOJ investigation continues to hang over the shares, analysts said.
- • Ericsson should post a strong Q1 report tomorrow, analysts at Kepler Cheuvreux said (buy, SEK 135)
- • Network sales should benefit from large deliveries in the U.S. and strong demand in Europe and Latin America, while China should stabilize at a low level: Kepler
- • Ericsson should continue to post positive organic growth in Q1, SEB said (buy, SEK 130)
- • Networks end markets seem to enjoy momentum, while positive FX tailwinds are enough to compensate for Russia revenue losses
- • The combination of valuation and fundamentals is attractive: SEB
- • Ericsson is not at risk from supply chain constraints, while demand will increase regardless of macroeconomic shocks, Carnegie said (buy, SEK 110)
- • However, the recent news flow regarding Ericsson's past conduct and disclosures and the DOJ investigation adds risk to the equity story, Bank of America said (underperform, SEK 86)
- • Meanwhile, the RAN cycle may peak this year, and AT&T's capex plans may be somewhat concerning for Ericsson and Nokia, BofA said
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