Research Alert: CFRA Upgrades Opinion On Ads Of Ericsson To Buy From Hold
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We upgrade our rating to Buy and raise our 12-month target price to USD16 (USD13), pegged to target 2027 EV/EBITDA of 8.6x (6.9x), which is one standard deviation above the five-year historical mean of 6.9x. The higher multiple reflects improving earnings visibility, gradual recovery in telecom spending, expanding exposure to AI-related network infrastructure demand, and expectations for stronger margin quality supported by a higher software and services contribution over time. We maintain 2026 revenue at SEK243B (+1.8% Y/Y) and 2027 at SEK249B (+2.6% Y/Y), reflecting a gradual recovery in telecom spending, continued 5G network investments, improving contribution from Cloud Software and Services, and steady growth in Enterprise. We also maintain 2026 EPADS at SEK8.99 (-0.4% Y/Y) and 2027 EPADS at SEK9.23 (+2.7% Y/Y), reflecting resilient margins supported by cost optimization initiatives, efficiency measures, and improving software and services mix.