Ericsson : Strategic contracts in Asia set to undermine margins in H2 2019 and potentially further out. Target price lowered to SEK 80
>Neutral recommendation maintained, forecasts lowered by 11% and target price revised to SEK 80 (vs SEK 95 previously) - Based on the group’s Q2 2019 earnings, which clearly fell short of expectations for EBIT and EPS, plus a negative message on margins for strategic contracts in H2 (despite Ericsson maintaining its margin guidance 10% for 2020 and 12% for 2022), we have lowered our forecasts by 11% and reduced our DCF-derived target price to SEK 80 (vs SEK 95 previou...Ericsson provides communications technology and services. Co.'s services, software and infrastructure – especially in mobility, broadband and the cloud – enable the telecom industry and other sectors to do business, increase efficiency, improve the user experience and capture new opportunities. Co. has more than 110,000 professionals and customers in more than 180 countries. Co. provides support for networks with more than 2.5 billion subscribers. Co.'s core business areas are called Radio, Core and Transmission and Telecom Services. Co. divides its operations into three business segments: Networks, Global Services and Support Solutions.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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