Goldman downgrades Ericsson to Sell on declining wireless market - InvestingChannel

Goldman downgrades Ericsson to Sell on declining wireless market

Goldman Sachs analyst Alexander Duval downgraded Ericsson to Sell from Neutral with a price target of $4.90, down from $6.60. The analyst meaningfully lowered estimates following the company’s Q4 results and sees downside risk Ericsson’s regional mix shift and macroeconomic headwinds. A declining wireless market and mix shift towards less profitable regions could create downside pressures on the company’s sales and margins, the analyst tells investors in a research note. In addition, the firm says recent management commentary highlighted a greater degree of macroeconomic sensitivity in 5G radio access network spending than it previously anticipated. Further, prior positive catalysts related to Ericsson’s patents negotiations with Apple have played out, writes Goldman.

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