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Canaccord Lowers Price Target On Ericsson Shares To $7


Canaccord Genuity reiterated its Hold rating on Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC), lowering the price target to $7 from $8.50. The analysts reduced their 2016/2017 non-IFRS EPS estimates from $0.66/$0.71 to $0.44/$0.52.

Ericsson posted Q2 non-IFRS EPS of SEK0.83, below SEK1.06 consensus estimate, affected by a continued slowdown in mobile broadband infrastructure investment globally. Moreover, currency volatility in Brazil, Russia and the Middle East combined with the completion of 4G buildouts in developed markets negatively impacted carrier spending.

The analysts expect soft Network revenue trends through 2017 as 5G investments remain in early stages of development and global 4G spending likely declines over the next several years.

"While the ongoing execution on its SEK9B cost reduction program through 2017 should help, we anticipate a greater mix of professional services over the next two years will weigh on gross margins," said Canaccord.

Latest Ratings for ERIC

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

View More Analyst Ratings for ERIC
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