Oddo BHF reiterates its 'underperform' rating and lowers its target price from SEK 52 to SEK 51, in the wake of EPS forecasts for 2024/2025 lowered by an average of 2%, ahead of the company's quarterly publication on July 12.

Prospects for recovery remain uncertain for the time being", says the analyst, warning that the O-RAN contract with AT&T in the USA will not fully compensate for the continued deceleration in Europe and the decline in the Indian market.

"In addition, Ericsson continues to face commercial difficulties in the enterprise division, notably Vonage due to the loss of a contract in 2023, as well as the cessation of activity in certain countries", he continues.

On the basis of its forecasts, Oddo BHF estimates that the Scandinavian network equipment supplier's share is trading at eight times 2024 EBITDA, in line with its five-year average, 'which is not sufficiently attractive given the current context'.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.