Ericsson (NASDAQ:ERIC) Stock Rating Raised to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Ericsson (NASDAQ:ERIC) from a hold rating to a buy rating in a report published on Saturday morning,Wall Street Zen reports.

Other equities analysts have also recently issued reports about the stock. JPMorgan Chase & Co. decreased their price objective on shares of Ericsson from $11.40 to $10.20 and set a “neutral” rating for the company in a research report on Thursday, October 8th. Weiss Ratings downgraded shares of Ericsson from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, August 28th. Danske downgraded Ericsson from a “buy” rating to a “hold” rating in a research note on Friday. Citigroup restated a “neutral” rating on shares of Ericsson in a research note on Wednesday, July 15th. Finally, Morgan Stanley cut shares of Ericsson from an “equal weight” rating to an “underweight” rating and cut their price objective for the company from $11.00 to $9.00 in a research note on Tuesday, September 22nd. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $9.60.

Ericsson Stock Down 1.5%

Shares of NASDAQ ERIC opened at $10.55 on Friday. Ericsson has a 52-week low of $9.03 and a 52-week high of $13.77. The stock has a market capitalization of $35.56 billion, a PE ratio of 17.30, a P/E/G ratio of 1.88 and a beta of 0.96. The company has a quick ratio of 0.89, a current ratio of 1.12 and a debt-to-equity ratio of 0.21. The firm has a fifty day moving average of $9.92 and a 200-day moving average of $10.95.

Ericsson (NASDAQ:ERIC) last posted its quarterly earnings results on Thursday, October 15th. The communications equipment provider reported $0.18 EPS for the quarter, beating the consensus estimate of $0.14 by $0.04. The firm had revenue of $5.94 billion for the quarter, compared to analyst estimates of $5.59 billion. Ericsson had a net margin of 8.31% and a return on equity of 21.03%. Ericsson’s revenue for the quarter was up 5.8% compared to the same quarter last year. During the same quarter last year, the firm posted $1.37 earnings per share. On average, analysts anticipate that Ericsson will post 0.63 EPS for the current year.

Ericsson Dividend Announcement

The firm also recently disclosed a dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 29th were paid a $0.1579 dividend. The ex-dividend date of this dividend was Tuesday, September 29th. Ericsson’s payout ratio is presently 25.64%.

Institutional Investors Weigh In On Ericsson

A number of large investors have recently added to or reduced their stakes in ERIC. Public Employees Retirement System of Ohio acquired a new position in Ericsson during the 2nd quarter worth $15,812,000. Bank of New York Mellon Corp boosted its holdings in Ericsson by 8.5% during the first quarter. Bank of New York Mellon Corp now owns 160,581 shares of the communications equipment provider’s stock worth $1,810,000 after buying an additional 12,534 shares during the last quarter. Finally, Advisors Preferred LLC acquired a new position in Ericsson during the first quarter valued at approximately $493,000. Institutional investors own 7.99% of the company’s stock.

Key Stories Impacting Ericsson

Here are the key news stories impacting Ericsson this week:

• Positive Sentiment: Q3 results exceeded expectations. Ericsson reported approximately 7% organic sales growth, driven by its Networks business, while adjusted gross margin reached 47.7%. Earnings of $0.18 per share surpassed the $0.14 consensus estimate, supporting the sharp rally following the report. Why Ericsson Stock Soared Today
• Positive Sentiment: Networks demand remains a key growth driver. Reported sales rose about 6% year over year to SEK 59.5 billion, with the Networks segment posting roughly 9% organic growth. This indicates continued customer spending on mobile-network infrastructure. Ericsson shares gain after 7% organic sales growth
• Positive Sentiment: Ericsson and Verizon completed a notable 6G milestone. The companies conducted what they described as the first outdoor pre-standard 6G field call in the 7 GHz band at a commercial site in California. The test provides long-term validation of Ericsson’s technology, although 6G is still years from meaningful revenue contribution. Verizon and Ericsson Accelerate 6G Development
• Neutral Sentiment: Management is simplifying the organization. Ericsson will combine parts of its Asia-Pacific operations and redistribute its Enterprise Wireless Solutions portfolio to improve efficiency, leverage research and development, and capture synergies. The changes may reduce costs but also involve executive transitions and portfolio disruption. Ericsson announces simplification of Group structure
• Negative Sentiment: Higher component costs are the main near-term concern. AI-related demand is raising chip and equipment costs, creating a margin headwind next year. Ericsson expects to pursue structural customer price increases in 2027, but investors may question how quickly those increases can offset inflation without hurting demand. Ericsson braces for component cost hit

About Ericsson

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a Swedish telecommunications and technology company that provides communications infrastructure, software, and related services to telecommunications operators and enterprises worldwide. The company was founded in 1876 by Lars Magnus Ericsson and is headquartered in Stockholm, Sweden.

Ericsson’s offerings include mobile network equipment and services for 4G and 5G networks, radio access systems, core networks, transport solutions, and network management software.