01:50 AM EDT, 07/18/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We adjust our 12-month target price for Ericsson (ERIC) to USD8 from USD9, applying an EV/EBITDA multiple of 6.0x to our 2025 EPS estimate, in line with its three-year average forward EV/EBITDA. We leave our EPS forecasts unchanged. ERIC reported Q2 2025 net profit of SEK4.6 billion (Q2 2024: -SEK11.0 billion), beating the S&P Capital IQ consensus estimate of SEK4.4 billion, helped by sales growth in North America and continued cost cutting initiatives. However, we note that U.S. tariffs constrained profit margin expansion. On the strategic front, the company successfully signed up all three operators in Japan for its joint venture Aduna, expanding its market coverage, which we view positively. We also see ERIC's investments in AI and 5G stand-alone networks as key drivers of future growth and innovation. That said, we remain cautious given persistent macroeconomic pressures and global trade dynamics, which could limit revenue visibility and near-term growth. Hence, we maintain our Hold opinion on ERIC.