Still no concrete proof of rumours

Vodafone Idea launches 5G rollout

Less flow, more glow

5G in India: still low deployments in Oct

ASML crash, TSMC beat and raise, Wolfspeed lifeline, and more. Tech We...

As always, during earnings season, we wrap-up what happened in the previous week.

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 10/16/2024

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ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 16/10/2024

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Ericsson : Continuing margin improvement, but visibility on the market...

>Underperform rating maintained but target price raised to SEK 70 vs SEK 55 - Following the Q3 2024 results publication, we maintain our Underperform rating but lift our estimates by 6% on average for 2024 and 2025, as well as our target price to SEK 70 vs SEK 55. Although this quarter was more favourable for Ericsson thanks to the positive impact of the O-RAN contract with AT&T in the US, the outlook of an upturn on the telecom investment market broadly remains unce...

Ericsson : Poursuite de l’amélioration des marges, mais la visibilité ...

>Opinion Sous-performance maintenue, mais OC relevé à 70 SEK vs 55 SEK - Suite à la publication des résultats T3 24, nous maintenons notre opinion sous-performance mais relevons nos estimations en moyenne de 6% sur 2024 et 2025 ainsi que notre OC à 70 SEK vs 55 SEK. Si ce trimestre était plus favorable pour Ericsson grâce à l’impact positif du contrat O-RAN avec AT&T aux Etats-Unis, les perspectives de reprise du marché des investissements télécoms au global demeurent...

Ericsson (Buy, TP: SEK96.00) - Big earnings beat with FCF treat

Ericsson’s strong Q3 results ticked most of our BUY-case boxes and we continue to see the earnings momentum story build into the seasonally important Q4e, which offers the possibility of extraordinary capital distribution. Signs of market stabilisation, a rolling 12-month ROCE of 17.5%, and an adj. FCF margin of 14.9% could also attract a new investor base at an undemanding valuation. We reiterate our BUY and have raised our target price to SEK96 (85), having raised our above-consensus 2024–2025...

Improved earnings momentum and ATH GMs

ODDO BHF SECURITIES MORNING NEWS – COMMENTAIRES DETAILLES 15/10/2024

With the recall behind us we believe its time to look forward. Ignoring the noise from the recall over the last years, we believe Philips performance was good. Moreover the company’s positioning in IGT, Monitoring, Cardio Ultrasound and MRI has never been better. There is a credible self-help plan to lift Adj EBITA by 70% over the coming 5 years which should position margins and returns at industry average. The discount to the sector is no longer warranted. We upgrade to outperform. - ...

ODDO BHF SECURITIES MORNING NEWS – DETAILED COMMENTS 10/15/2024

With the recall behind us we believe its time to look forward. Ignoring the noise from the recall over the last years, we believe Philips performance was good. Moreover the company’s positioning in IGT, Monitoring, Cardio Ultrasound and MRI has never been better. There is a credible self-help plan to lift Adj EBITA by 70% over the coming 5 years which should position margins and returns at industry average. The discount to the sector is no longer warranted. We upgrade to outperform. - ...

Ericsson 3Q24: Networks recovering in US; near-record gross margins

Ericsson : Q3 2024 results above expectations thanks to AT&T contract ...

>Q3 2024 results above expectations, driven by Networks in North America and a new IPR licensing agreement, the rest of the business remains complicated - Q3 2024 revenues were SEK 61.8bn, slightly above Infront Data consensus at SEK 61.5bn, but down 1% organically, with all divisions (Networks, Cloud Software and Services) down 1%. A new 5G patent licensing agreement was signed in the quarter and IPR licensing revenues increased to SEK 3.5bn, part of which related ...

Ericsson : Q3 2024 results above expectations thanks to AT&T contract ...

>Q3 2024 results above expectations, driven by Networks in North America and a new IPR licensing agreement, the rest of the business remains complicated - Q3 2024 revenues were SEK 61.8bn, slightly above Infront Data consensus at SEK 61.5bn, but down 1% organically, with all divisions (Networks, Cloud Software and Services) down 1%. A new 5G patent licensing agreement was signed in the quarter and IPR licensing revenues increased to SEK 3.5bn, part of which related ...

Adj. EBITA +29% vs. cons, driven by North America

5G in India: slightly positive sequential delta

North America picking up steam

Ericsson (Buy, TP: SEK85.00) - Earnings momentum accelerating

Similar to Q2, we expect a positive mix-driven gross margin and FCF beat, with Q3e adj. EBITA 12% above post-Q2 Infront consensus, signalling accelerating earnings momentum in H2e and improving investor sentiment. The AT&T contract ramp-up appears to be on track, and we find the SEK10.6bn divestment of non-core iconectiv favourable, sharpening the business profile and increasing the potential for share buybacks in 2025e. We reiterate our BUY and have raised our target price to SEK84 (83).