Research Alert: CFRA Keeps Hold Opinion On Adss Of Ericsson
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our Hold rating and raise our 12-month target to USD13 from USD11, based on an EV/EBITDA multiple of 6.9x (7.0x), in line with its five-year average, applied to our 2027 EBITDA estimate of SEK47.9B. The multiple reflects a cautious stance on margin expansion given input cost pressures and a still-flat Radio Access Network (RAN) market. As Q1 2026 results were seasonally in line with expectations, we maintain our 2026 revenue estimate at SEK243B and 2027 at SEK249B, supported by stable demand from 5G deployments and improving contribution from Cloud Software and Services, partly offset by weaker North America trends. Hence, we also maintain our 2026 EPADS at SEK8.99 and 2027 at SEK9.23, reflecting cost discipline and improving mix, partly offset by ongoing input cost pressures. Earnings growth remains gradual, with near-term performance influenced by deal timing and cost headwinds, while margin improvement is expected to be supported by efficiency measures and improving business mix over time.
