Skip to main content

Market Overview

6 Takeaways From Mobile World Congress Day 3


Analysts at Citi Research have been attending the Mobile World Congress in Spain this week. Here is a list of analysts' six takeaways from day three of the congress.

1. According to Ericsson (NASDAQ: ERIC) CEO Jan Frykhammar, the company plans to keep opex flat year-over-year (Y/Y) in 2015.

The company intends to ramp-down spending in the second half of the year to balance out large cloud and IP-related spending in the first half of the year.

2. Frykhammar projects little Y/Y change in business mix of coverage versus capacity in 2015, hinting that gross margins will likely also be flat Y/Y for Ericsson. He expects an eventual rise in margins from the new mix, but that rise may not come into play until 2016-2017.

3. Analysts believe that Ruckus Wireless Inc (NYSE: RKUS) will win the Comcast Corp (NASDAQ: CMCSA) wireless deployment as the MSO moves to .11ac.

Related Link: A Comprehensive Preview Of Apple's 'Spring Forward' Event

Analyst do not believe this win is dependent on the timing of Comcast's deal with Time Warner Cable Inc (NYSE: TWC).

4. According to Ruckus CEO Salina Lo, Hewlett-Packard Co (NYSE: HPQ)'s proposed acquisition of Aruba Networks Inc (NASDAQ: ARUN) would be a net positive for Ruckus in the long-term. HP's switching business competes with many Aruba partners, such as Juniper Networks Inc (NYSE: JNPR), Brocade Communications Systems (NASDAQ: BRCD) and Dimension Data (NYSE: NTT).

Lo believes this conflict of interest could drive partners toward Ruckus.

5. F5 Networks Inc (NASDAQ: FFIV) has seen a strong "create rate" lately for million dollar-plus deals.

6. F5 CEO John McAdam described the company's partnership with Cisco Systems Inc (NASDAQ: CSCO) as "working really well."

F5 is seeing strong pull-through demand resulting from its partnerships with both Cisco and VMWare Inc (NYSE: VMW).

Latest Ratings for ERIC

Sep 2020Raymond JamesMaintainsOutperform
Jul 2020B of A SecuritiesMaintainsBuy
Jun 2020Raymond JamesMaintainsOutperform

View More Analyst Ratings for ERIC
View the Latest Analyst Ratings


Related Articles (ERIC + RKUS)

View Comments and Join the Discussion!

Posted-In: Analyst Color Analyst Ratings Tech

Latest Ratings

PHXSeaport GlobalInitiates Coverage On
AFCGLake StreetInitiates Coverage On29.0
OSSNoble Capital MarketsUpgrades7.0
NCNOGabelli & Co.Upgrades
HAECJS SecuritiesUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at