Oddo BHF maintains its 'underperform' rating on Ericsson following its quarterly publication last Friday, but raises its target price from SEK 51 to SEK 55, in the wake of estimates raised by an average of 3% over 2024-25.

According to the analyst, the positive impact of the O-RAN contract with AT&T in the USA will not fully compensate for the continued deceleration in Europe, the sharp fall in the Indian market, and competition from Chinese equipment manufacturers in Latin America.

The analyst also points to the persistence of the enterprise division's commercial difficulties and conflicts with the US Department of Justice, as well as a valuation that he does not consider sufficiently attractive given the current context.

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