Deutsche Bank Downgrades Ericsson (ERIC) to Hold

Deutsche Bank downgraded Ericsson (NASDAQ: ERIC) from Buy to Hold. Analyst Johannes Schailer doesn't expect earnings growth in 2016.

"We continue to believe that Ericsson should make progress towards its SKr9bn cost savings target by 2017 (4% of sales) but this is reflected in our estimates and upside from further cuts in problem areas like IP routing seems unlikely for now despite the Cisco partnership. With worse than expected revenue declines and high EM risk, we expect no EPS growth in 2016 and lower our target to SKr85 (from SKr100). We “only” cut our EPS forecast by 4% for 2016 as we now factor in the Apple settlement. However, the “underlying” cut is >10% to earnings. For Q4-15, we expect sales of SKr73bn and adj. EBITA of SKr12.6bn," said the analyst.

For an analyst ratings summary and ratings history on Ericsson click here. For more ratings news on Ericsson click here.

Shares of Ericsson closed at $9.22 yesterday.

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