Ericsson (ERIC) has secured a pair of 5G contracts from Vodafone (VOD). It will supply cloud-native 5G core technology for Vodafone’s networks in the U.K. and Germany. Financial details of the deal were not disclosed.
The contract for the U.K. deployment will span five years, with Ericsson saying it will become a key Vodafone 5G network partner. In Germany, deployment is underway, and achievements include the April launch of the largest standalone commercial 5G network in Europe.
“Our close collaboration with Ericsson has been significant in taking the next step for 5G innovation. In choosing to continue working with Ericsson’s leading solutions, we’re able to address new and developing enterprise, industry and society transformation business in the UK and Germany,” commented Chief Network Officer (CNO), Andrea Dona, Vodafone U.K.
“As key partners in Vodafone’s digital journey, we have deployed 5G across Europe after years of joint innovation…With the economic, enterprise and societal gains 5G offers, I am truly excited to see both Germany and the UK flourish,” said Arun Bansal, Ericsson’s President of Europe and Latin America.
Ericsson also announced that Australia’s Telstra has adopted its digital business support system technology to enhance the experience of its prepaid subscribers. New prepaid activations on the Telstra network now take less than a couple of minutes from about 10 minutes previously. (See Ericsson stock chart on TipRanks).
Cowen analyst Paul Silverstein reiterated a Buy rating on Ericsson stock and raised the price target to $19 from $17. Silverstein notes Ericsson’s gross margin improvements as a reason for the bullish rating.
Consensus among analysts is a Strong Buy based on 3 Buys. The Ericsson average analyst price target of $19 implies 48.55% upside potential to current levels.
ERIC scores a 7 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.
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