Telefonaktiebolaget L M Ericsson Class B

ERIC B: XSTO (SWE)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	SEK 29.00	Jzxl	Kxdzncmn

Ericsson Earnings: A Slowdown in North America Network Spending and Poor Margins Weigh on Results

Matthew Dolgin

Apr 18, 2023

Ericsson reported weak sales and poor margins for the first quarter, and management’s outlook for the second quarter pointed to further deterioration in results. Tough comps in 2023 and the firm’s cost-cutting program lead us to believe the firm will return to sales growth and see significantly improved margins in 2024. We’re reducing our fair value estimate by SEK 5 to SEK 95, and we think the stock is materially undervalued despite near-term headwinds.

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