Canaccord Genuity analyst Michael Walkley maintained a Hold rating on Ericsson (NASDAQ: ERIC) today and set a price target of $10. The company’s shares opened today at $9.08, close to its 52-week high of $9.30.
Walkley noted:
“We believe the including its cost competitive design has improved Ericsson’s market share with operators preparing for 5G buildouts with Ericsson benefiting in North America particularly in its Verizon footprint. We believe the current management team has made significant progress in right-sizing the cost structure of Ericsson while investing in R&D to improve their competitive position for the upcoming 5G cycle. With recent execution on cost cuts in service delivery, we believe Ericsson is more likely to achieve their 2020 operating margin target of 10% and greater than 12% beyond 2020. We maintain our HOLD rating on valuation but increase our price target to $10 based on our increased estimates.”
According to TipRanks.com, Walkley is a 5-star analyst with an average return of 14.3% and a 60.5% success rate. Walkley covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Adesto Technologies Corp, and Digi International Inc.
Ericsson has an analyst consensus of Hold, with a price target consensus of $9.22.
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The company has a one-year high of $9.30 and a one-year low of $5.84. Currently, Ericsson has an average volume of 4.56M.
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Telefonaktiebolaget LM Ericsson engages in the provision of telecommunications equipment and related services to mobile and fixed network operators. It operates through the following segments: Networks, Digital Services, Managed Services, and Other.
