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Research Alert: CFRA Maintains Hold Opinion On Adss Of Ericsson
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Research Alert: CFRA Maintains Hold Opinion On Adss Of Ericsson
Oct 14, 2025 10:55 PM

01:40 AM EDT, 10/15/2025 (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 USD11 (raised from USD8), applying an EV/EBITDA multiple of 6.6x to our 2025 EPS estimate, in line with its five-year average forward EV/EBITDA. We revise our EPS forecasts to SEK7.00 from SEK6.00 for 2025 and maintain SEK6.20 for 2026. We believe ERIC is entering a structurally stronger phase following several years of cost optimization, portfolio rationalization, and operational streamlining. Management's "margin at a new long-term level" commentary in Q3 2025 underscores successful execution in efficiency initiatives and selective investment discipline. Additionally, we think the Networks segment will continue to provide earnings stability, while Cloud Software & Services offers gradual upside from portfolio optimization. However, persistent FX volatility and ongoing normalization in North America's 5G investments may limit near-term momentum, in our view. Hence, we maintain our Hold rating on ERIC.

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