Nomura Securities Q2 Review on Ericsson (ERIC): Solid Results, But Investors Remain Focused On...
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Price: $10.27 --0%
Rating Summary:
11 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
11 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on Ericsson (NASDAQ: ERIC).
Analyst, Stuart Jeffrey, said, "In aggregate, we believe Ericsson’s Q2 results will trigger only small downward revisions to consensus forecasts. Margin pressures remain in place and end market uncertainty remains. At the same time, the potential for a solid expansion in gross margins in 2013 (on reducing network roll out / modernisation contracts) remains in place and provides a likely source of upside surprise, in our view."
"Weak working capital management is likely to remain in focus. In addition, concerns on the call may focus on the need to provide further financing to ST Ericsson, which used USD 0.2bn of cash in the quarter and has used USD 1.2bn of a total USD 1.4bn financing facility provided by its parents...Investors may also focus on Ericsson’s progress with its new router (SSR) solution. Ericsson claims to have won seven contracts to date. The greater the success of this product, the better gross margins
are likely to trend longer term."
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 $8.31 yesterday.
Analyst, Stuart Jeffrey, said, "In aggregate, we believe Ericsson’s Q2 results will trigger only small downward revisions to consensus forecasts. Margin pressures remain in place and end market uncertainty remains. At the same time, the potential for a solid expansion in gross margins in 2013 (on reducing network roll out / modernisation contracts) remains in place and provides a likely source of upside surprise, in our view."
"Weak working capital management is likely to remain in focus. In addition, concerns on the call may focus on the need to provide further financing to ST Ericsson, which used USD 0.2bn of cash in the quarter and has used USD 1.2bn of a total USD 1.4bn financing facility provided by its parents...Investors may also focus on Ericsson’s progress with its new router (SSR) solution. Ericsson claims to have won seven contracts to date. The greater the success of this product, the better gross margins
are likely to trend longer term."
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 $8.31 yesterday.
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