Zacks Investment Research downgraded shares of Ericsson (NASDAQ:ERIC) from a hold rating to a sell rating in a research note issued to investors on Thursday.

According to Zacks, “Ericsson’s second-quarter 2017 earnings missed the Zacks Consensus Estimate significantly and fell drastically year over year, dragged by low investments in mobile broadband and weak demand. Ericsson warned that an uncertain market could wipe out nearly SEK 5 billion of operating income over the next year. There is also an increased risk of market and customer project adjustments, which can have a negative impact of SEK 3-5 billion on the operating income in the coming year. Escalating restructuring expenses and spectrum crunch may pose as significant headwinds, going forward. Over the past six months, Ericsson’s shares have recorded a negative average return far worse than the Zacks categorized Wireless Equipment industry’s average return. On the positive side, Ericsson plans to invest in R&D to fortify Networks business and intends to stabilize IT & Cloud roadmaps.”

Other analysts also recently issued reports about the company. Canaccord Genuity restated a neutral – hold rating and issued a $7.00 price target on shares of Ericsson in a research note on Friday, June 30th. Societe Generale began coverage on Ericsson in a research note on Wednesday, June 14th. They issued a hold rating for the company. Credit Suisse Group upgraded Ericsson from an underperform rating to a neutral rating in a research note on Wednesday, April 12th. Sanford C. Bernstein upgraded Ericsson from a market perform rating to an outperform rating in a research report on Wednesday, March 29th. Finally, Bank of America Corporation reiterated a buy rating on shares of Ericsson in a research report on Friday, June 2nd. Two equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the stock. Ericsson currently has an average rating of Hold and an average price target of $5.95.

Ericsson (ERIC) opened at 6.34 on Thursday. Ericsson has a 52 week low of $4.83 and a 52 week high of $7.55.

Ericsson (NASDAQ:ERIC) last released its quarterly earnings results on Tuesday, July 18th. The communications equipment provider reported $0.02 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.05 by $0.03. The firm had revenue of $49.90 billion during the quarter, compared to the consensus estimate of $50.66 billion. Ericsson had a negative net margin of 6.40% and a negative return on equity of 3.16%. The business’s revenue for the quarter was down 7.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.83 earnings per share. Analysts anticipate that Ericsson will post $0.23 earnings per share for the current fiscal year.

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Several large investors have recently modified their holdings of the stock. Primecap Management Co. CA boosted its stake in shares of Ericsson by 2.9% in the first quarter. Primecap Management Co. CA now owns 81,901,979 shares of the communications equipment provider’s stock valued at $543,829,000 after buying an additional 2,290,675 shares during the last quarter. Brandes Investment Partners LP boosted its stake in shares of Ericsson by 9.1% in the first quarter. Brandes Investment Partners LP now owns 10,712,458 shares of the communications equipment provider’s stock valued at $71,131,000 after buying an additional 894,358 shares during the last quarter. Credit Suisse AG boosted its stake in shares of Ericsson by 912.8% in the first quarter. Credit Suisse AG now owns 4,542,361 shares of the communications equipment provider’s stock valued at $30,161,000 after buying an additional 4,093,879 shares during the last quarter. Wellington Management Group LLP bought a new stake in shares of Ericsson during the first quarter valued at $14,129,000. Finally, Bank of America Corp DE boosted its stake in shares of Ericsson by 5.0% in the first quarter. Bank of America Corp DE now owns 1,365,314 shares of the communications equipment provider’s stock valued at $9,066,000 after buying an additional 65,042 shares during the last quarter. 8.06% of the stock is owned by institutional investors.

About Ericsson

Telefonaktiebolaget LM Ericsson (Ericsson) provides infrastructure, services and software to the telecommunication industry and other sectors. The Company’s segments include Networks, IT & Cloud and Media. The Networks segment consists of two business units: Network Products and Network Services. The overall focus is on evolving and managing access networks, including the development of hardware and software for radio access and transport networks.

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