Ericsson downgraded to Neutral from Conviction Buy at Goldman Sachs - InvestingChannel

Ericsson downgraded to Neutral from Conviction Buy at Goldman Sachs

Goldman Sachs analyst Alexander Duval downgraded Ericsson to Neutral from Buy with a price target of $6.10, down from $10.80, and removed the shares from the firm’s Conviction List. The analyst sees lower visibility in the company’s path to EBIT profitability in the Cloud Software & Services and Enterprise segment, alongside margin pressures from its changing regional revenue mix. Duval admits to being “overly bullish” on Ericsson’s ability to continue driving cost savings in its non-core businesses over the last year. The market will need to see proof points indicating clear synergies for the acquired Vonage deal, and resolution of outstanding regulatory issues, in order to attribute a higher valuation, Duval tells investors in a research note.

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