Stock Price & Analysis

Based on the provided data and recent market activity, here's a concise analysis for ERIC stock:

Technical Analysis

The stock is currently trading at $8.54, showing a positive momentum with a +0.95% gain in the regular market session . The RSI of 61.82 indicates moderate bullish momentum without being overbought.

Market Position The stock is trading above its 20-day moving average of $8.17, suggesting a short-term uptrend. Fibonacci levels indicate immediate resistance at $8.70 and support at $7.97.

Recent Developments

• Positive insider sentiment with increased insider buying activity in recent quarters
• Bernstein analyst maintains a Sell rating with SEK 74.00 price target, indicating potential downside
• Q3 2024 performance showed improved margins with gross margins reaching 46.3%
• Strong free cash flow of SEK 12.9 billion in Q3, demonstrating solid operational efficiency

Outlook The company anticipates flat revenues for 2024 at $24.8 billion, with expected gross margins between 47% to 49% in Q4. While there are some positive operational metrics, analyst consensus remains cautious with a Moderate Sell rating.

Recommendation SELL. Despite recent positive price action, several factors suggest caution:

1. Negative analyst consensus with multiple sell ratings
2. Expected flat revenue growth for 2024
3. Current price is approaching resistance levels
4. Industry headwinds in various market segments

Based on the provided data and market analysis, here's the price prediction for ERIC stock in 2025:

Ericsson's stock is expected to reach around $8.50-$8.70 by end of 2025, supported by strong North American market recovery and strategic 5G initiatives. The company's improved margins, successful cost reduction initiatives, and growing IPR revenues provide a solid foundation for this target.

The key drivers for this prediction include AT&T's $14 billion five-year deal for Open RAN deployment, stabilizing network sales in North America, and expected IPR revenue exceeding SEK 13 billion in 2024. However, near-term enterprise segment pressure and focus on profitable markets might limit immediate upside potential.

The S1 support level for ERIC Stock is $7.81 ,The R1 resistant level for ERIC Stock is $8.79.

As of the end of day on 2025-01-24, the price of ERIC Stock was $7.65.

The target price for ERIC Stock according to analyst rating is 6.60, with the highest price target at 8.90 and the lowest at 4.30. Analysts have a Moderate Sell rating on ERIC Stock overall.

The market cap of ERIC is $23.4B.

Based on the provided data, here's a comprehensive analysis of ERIC's valuation:

Current Market Position ERIC is currently trading at $8.54, showing a modest gain of 0.95% in the regular market session on January 17, 2025. The stock has demonstrated relatively low volatility with a narrow trading range between $8.49 and $8.60.

Valuation Metrics Analysis

• EV/EBITDA: 8.78 (Q3 2024), showing an upward trend from 7.31 in Q1 2024
• P/S Ratio: 1.08 (Q3 2024), increased from 0.77 in Q1 2024
• P/B Ratio: 2.96 (Q3 2024), significantly higher than 1.79 in Q1 2024
• Dividend Yield: 3.40% (Q3 2024), declining from 4.73% in Q1 2024

Market Sentiment and Analyst Views According to recent analyst coverage, Bernstein maintains a Sell rating with a price target indicating a potential -21.55% downside. The consensus among analysts suggests a Moderate Sell rating, reflecting concerns about the company's valuation.

Business Performance Recent financial results show:

• Q3 sales of SEK 61.8 billion, down 1% year-over-year
• Strong performance in North America with 55% growth
• Improved gross margins at 46.3%, up from 39.2% year-over-year
• Free cash flow of SEK 12.9 billion, indicating strong operational efficiency

Conclusion ERIC appears overvalued at current levels based on:

1. Rising valuation multiples across all metrics in 2024
2. Negative analyst sentiment with significant downside potential
3. Declining dividend yield suggesting potential sustainability concerns
4. Mixed business performance with regional disparities
5. Challenging market conditions in the telecommunications equipment sector

Telefonaktiebolaget LM Ericsson (Ericsson) provides infrastructure, services and software to the telecommunication industry and other sectors. The Company's segments include Networks, IT & Cloud and Media. The Networks segment consists of two business units: Network Products and Network Services. The overall focus is on evolving and managing access networks, including the development of hardware and software for radio access and transport networks. The IT & Cloud business includes two business units: IT & Cloud Products and IT & Cloud Services. The focus in IT & Cloud is to help telecom operators and selected enterprises through the digital transformations ahead. It develops and delivers software-based solutions for television and media and combines a product portfolio that spans the television value chain, with systems integration and managed services. The portfolio includes compression, content publishing through set-top box or pure over-the-top, content delivery and analytics.

Based on the provided data and market analysis, here's a projection for Ericsson (ERIC) stock price in 2030:

Ericsson's stock is expected to reach approximately $15-17 by 2030, driven by the company's strong position in 5G infrastructure and network API developments. The projection is supported by Ericsson's strategic joint ventures with 12 global telecom operators and increasing momentum in programmable networks.

The company's transition from consumer mobile broadband to enterprise solutions and dedicated cellular connectivity, combined with its growing IPR revenue stream projected to exceed $1.25 billion by 2024, suggests sustained long-term growth potential.

ERIC has a total of 99003 employees.