Wall Street Zen Upgrades Ericsson (NASDAQ:ERIC) to Buy

Ericsson (NASDAQ:ERIC) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Other equities analysts have also issued reports about the company. Citigroup restated a “neutral” rating on shares of Ericsson in a research note on Wednesday, July 15th. Weiss Ratings downgraded Ericsson from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, August 28th. Danske downgraded Ericsson from a “buy” rating to a “hold” rating in a research report on Friday. JPMorgan Chase & Co. cut their price objective on Ericsson from $11.40 to $10.20 and set a “neutral” rating for the company in a report on Thursday, October 8th. Finally, Morgan Stanley cut shares of Ericsson from an “equal weight” rating to an “underweight” rating and decreased their price objective for the stock from $11.00 to $9.00 in a research report on Tuesday, September 22nd. One investment analyst has rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Ericsson has an average rating of “Hold” and an average target price of $9.60.

Ericsson Stock Performance

Ericsson stock opened at $10.55 on Friday. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.90 and a current ratio of 1.16. Ericsson has a fifty-two week low of $9.03 and a fifty-two week high of $13.77. The stock has a market cap of $35.56 billion, a P/E ratio of 17.30, a PEG ratio of 1.88 and a beta of 0.96. The firm’s fifty day moving average price is $9.92 and its 200-day moving average price is $10.95.

Ericsson (NASDAQ:ERIC) last posted its quarterly earnings data on Thursday, October 15th. The communications equipment provider reported $0.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.04. The company had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.59 billion. Ericsson had a return on equity of 20.89% and a net margin of 8.31%. The firm’s quarterly revenue was up 5.8% on a year-over-year basis. During the same quarter last year, the company earned $1.37 earnings per share. Equities research analysts forecast that Ericsson will post 0.63 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ERIC. Bank of New York Mellon Corp lifted its stake in Ericsson by 8.5% during the first quarter. Bank of New York Mellon Corp now owns 160,581 shares of the communications equipment provider’s stock worth $1,810,000 after purchasing an additional 12,534 shares during the last quarter. Advisors Preferred LLC purchased a new position in shares of Ericsson in the 1st quarter worth about $493,000. Finally, Public Employees Retirement System of Ohio boosted its holdings in shares of Ericsson by 26.3% in the 1st quarter. Public Employees Retirement System of Ohio now owns 1,418,076 shares of the communications equipment provider’s stock worth $15,982,000 after purchasing an additional 295,185 shares in the last quarter. Institutional investors own 7.99% of the company’s stock.

Key Headlines Impacting Ericsson

Here are the key news stories impacting Ericsson this week:

• Positive Sentiment: Q3 results exceeded expectations. Ericsson reported approximately 7% organic sales growth, driven by its Networks business, while adjusted gross margin reached 47.7%. Earnings of $0.18 per share surpassed the $0.14 consensus estimate, supporting the sharp rally following the report. Why Ericsson Stock Soared Today
• Positive Sentiment: Networks demand remains a key growth driver. Reported sales rose about 6% year over year to SEK 59.5 billion, with the Networks segment posting roughly 9% organic growth. This indicates continued customer spending on mobile-network infrastructure. Ericsson shares gain after 7% organic sales growth
• Positive Sentiment: Ericsson and Verizon completed a notable 6G milestone. The companies conducted what they described as the first outdoor pre-standard 6G field call in the 7 GHz band at a commercial site in California. The test provides long-term validation of Ericsson’s technology, although 6G is still years from meaningful revenue contribution. Verizon and Ericsson Accelerate 6G Development
• Neutral Sentiment: Management is simplifying the organization. Ericsson will combine parts of its Asia-Pacific operations and redistribute its Enterprise Wireless Solutions portfolio to improve efficiency, leverage research and development, and capture synergies. The changes may reduce costs but also involve executive transitions and portfolio disruption. Ericsson announces simplification of Group structure
• Negative Sentiment: Higher component costs are the main near-term concern. AI-related demand is raising chip and equipment costs, creating a margin headwind next year. Ericsson expects to pursue structural customer price increases in 2027, but investors may question how quickly those increases can offset inflation without hurting demand. Ericsson braces for component cost hit

About Ericsson

Ericsson is a Swedish technology company that provides telecommunications equipment, software, and services to communications service providers and enterprise customers worldwide. Headquartered in Stockholm, the company develops infrastructure used to build and operate mobile and fixed networks, including solutions supporting 4G, 5G, and other advanced communications technologies.

Its main offerings include radio access network equipment, core network platforms, transport systems, network management software, cloud-based communications solutions, and related professional services.