Deutsche Bank Upgrades Ericsson (ERIC) from Sell to Buy

Deutsche Bank upgraded Ericsson (NASDAQ: ERIC) from Sell to Buy. Raising target from SEK65 to SEK110.

Deutsche analyst says, "Stronger than expected network revenues and margins in our view suggest that Ericsson benefits better than expected from the current multi-year mobile data Capex cycle. We believe EBITA margins can remain broadly stable and raise 2011&12 EPS by 16 to 22%. After lengthy underperformance, improving margin resilience & visibility should in our view drive a 25% re-rating towards global peers and our new SEK110 target...We believe Ericsson is benefitting better than initially expected from this mobile data Capex cycle which we expect to grow at a 5% 2010-15 CAGR."

For more ratings news on Ericsson click here and for the rating history of Ericsson click here.

Shares of Ericsson closed at $14.89 yesterday.

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