ERIC Should I Buy
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Ericsson is not a strong buy right now for a beginner long-term investor, especially with $50,000-$100,000 to deploy and an impatient style. The stock has some technical support and mild bullish trend structure, but fundamentals are mixed, analyst views are mostly Neutral/Hold/Underperform, and there are no strong event-driven or proprietary trading signals today. My direct opinion: hold, not buy.
The technical setup is modestly constructive but not compelling enough for an immediate buy. ERIC is trading near 11.615 after a -2.16% regular-session drop and sits just above the pivot at 11.579. The moving averages are bullish (SMA 5 > SMA 20 > SMA 200), which supports an uptrend, while MACD histogram is slightly positive at 0.0319 but contracting, suggesting momentum is weakening. RSI_6 at 52.96 is neutral, so the stock is neither oversold nor strongly overbought. Support is at 11.174 and 10.924, with resistance at 11.984 and 12.234. Near-term pattern data suggests limited upside in the next week and a weaker one-month outlook.
No recent news in the past week, so there is no fresh catalyst from headlines. Technical trend remains above longer-term moving averages. Analyst target increases from Citi and Deutsche Bank indicate some improving expectations, and Nordea’s upgrade to Buy with a SEK 120 target supports the longer-term case. The company also posted revenue growth in the latest quarter, which is a positive underlying sign.
No recent news in the past week, so there is no fresh catalyst from headlines. Technical trend remains above longer-term moving averages. Analyst target increases from Citi and Deutsche Bank indicate some improving expectations, and Nordea’s upgrade to Buy with a SEK 120 target supports the longer-term case. The company also posted revenue growth in the latest quarter, which is a positive underlying sign.
In Q1 2026, Ericsson grew revenue to 5,400,539,456.43, up 4.86% YoY, which shows sales momentum. However, profitability weakened sharply: net income fell to 97,212,337.58, down 74.97% YoY, EPS dropped to 0.03, down 75.00% YoY, and gross margin slipped to 48.11%. This means the latest quarter was a revenue-growth quarter, but not a strong earnings quarter.
Recent analyst action is mixed but slightly improved on target prices, not conviction: Citi raised its target to SEK 110 and kept Neutral, Deutsche Bank raised to SEK 100 and kept Hold, BofA lowered its target to SEK 88 and kept Underperform, AlphaValue/Baader upgraded to Add, Santander downgraded to Neutral, and Nordea upgraded to Buy with a SEK 120 target. Overall Wall Street pros view is mixed: bulls point to cost cuts and growth opportunities, while bears emphasize competition from Nokia and Samsung and pressure on earnings growth.
