Why you should avoid Ericsson stock in 2025, Bernstein By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2025
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Source: Investing.com
Ericsson's Outlook: Bernstein has reiterated an "Underperform" rating for Ericsson, citing demand uncertainty and competitive pressures that could lead to a challenging 2025, with a price target set at SEK 74. The telecom sector is experiencing weak capital expenditure trends and may not recover robustly from the downturn expected in 2024.
Market Competition and Risks: Despite some revenue gains from contracts like AT&T, Ericsson's lack of guidance beyond a quarter raises concerns. Additionally, competition from Chinese vendors and market research downgrades signal potential risks for the mobile radio access network market, while Nokia's diversified strategy may offer it a more stable outlook.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
