Key Highlights:
- Ericsson (ERIC, Financial) achieved stable Q1 2025 sales with significant growth in North America.
- Analysts provide a mixed outlook, with a consensus "Hold" recommendation.
- Current market price suggests a potential downside according to GuruFocus metrics.
Ericsson (ERIC) has reported stable Q1 2025 organic sales with a promising expansion within North America, fueled by substantial contract acquisitions. The company's net sales reached SEK 55 billion, yielding a 48.5% gross margin and a 12.6% adjusted EBITA margin. Significant strides in programmable networks and strategic partnerships in the Asia Pacific region underscore Ericsson's ongoing progress and ambition.
Wall Street Analysts Forecast
According to projections from four financial analysts, the average one-year price target for Telefonaktiebolaget L M Ericsson (ERIC, Financial) stands at $7.15, with extremes ranging between a high of $8.54 and a low of $6.00. This average target suggests a potential downside of 11.43% from its current trading price of $8.07. Investors seeking an in-depth analysis can visit the Telefonaktiebolaget L M Ericsson (ERIC) Forecast page.
Further insights by nine brokerage firms yield a consensus recommendation of 3.3 for Ericsson, which translates to a "Hold" status on the recommendation scale from 1 (Strong Buy) to 5 (Sell). This indicates a cautious approach among analysts, reflecting mixed sentiment about the stock's future movement.
Leveraging proprietary calculations, GuruFocus estimates the GF Value for Ericsson over the next year to be $5.74. This figure suggests a substantial potential downside of 28.87% from the prevailing market price of $8.07. The GF Value represents GuruFocus' estimation of the stock's fair market value, derived from historical trading multiples, past growth trajectories, and expected future performance. For comprehensive data and analysis, access the Telefonaktiebolaget L M Ericsson (ERIC, Financial) Summary page.
