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Ericsson (ERIC) Stock Analysis

Buy WaitModerate Confidence

Technology · Communication Equipment

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and... Read more

$11.58+2.2% upside
Score 5.9/10Entry $11.04Target $11.88Reward/Risk 0.2:1

TrendMatrix rates Ericsson (ERIC) as Buy (Wait for Entry) with moderate confidence. The stock trades at $11.58 with +2.2% upside to the $11.88 price target. Overall score: 5.9/10 across 10 analysis dimensions. Reward/risk ratio: 0.2:1.

Passes 3/4 gates (positive momentum, clean insider activity, no SEC red flags). Fails on favorable risk/reward ratio. Suitability: moderate.

Val7.5Qual5.3Grw5.6Mom5.7Sent5.4Ins4.7Peer5.6Tech5.2Risk7.45.9OVERALL

Investment Thesis

+ Sector modifier (): +1.2
+ Earnings catalyst in 23 days
+ Strong earnings beat streak (4/4)
- Analyst target reached - limited upside remaining
- Near 52-week high (4.1% away)
- V7 low-quality RISK_OFF penalty: -0.5 (Q=5.3)

Fundamentals

P/E (TTM)12.6
P/E (Fwd)16.5
Mkt Cap$38.5B
EV/EBITDA
Profit Mgn12.0%
ROE28.3%
Rev Growth-5.0%
Beta0.57
Dividend2.81%
Analysts29
Frequently Asked Questions
Is ERIC stock a buy right now?

TrendMatrix rates Ericsson (ERIC) as Buy (Wait for Entry) with moderate confidence. Score 5.9/10. Entry target: $11.04.

What is the ERIC stock price target?

Take-profit target: $11.88 (+2.2% upside). Reward/risk ratio: 0.2:1. Stop-loss: $10.50.

What are the risks of investing in ERIC?

Analyst target reached - limited upside remaining; Near 52-week high (4.1% away); V7 low-quality RISK_OFF penalty: -0.5 (Q=5.3).

Is ERIC overvalued or undervalued?

Ericsson trades at a P/E of 12.6 (forward 16.5). TrendMatrix value score: 7.5/10. Verdict: Buy (Wait for Entry).

What do analysts say about ERIC?

29 analysts cover ERIC with a consensus score of 2.8/5. Average price target: $10.

What does Ericsson do?Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to...

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

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57 NEUTRAL
20d50d200dGOLDEN CROSSSupp $10.82Res $12.12

Price Targets

$11
$11
$12
Upside+2.2%
Reward/Risk0.2:1

Position Sizing

ConvictionMEDIUM
Suggested %0.5%
Max %1%
RegimeRISK_OFF

Risk Alerts

! V8: Target reached (-26.3% upside)
! ASYMMETRY:-3.8=NEGATIVE
CATALYSTSuitability: Moderate
Momentum 5.7>=5.0
Insider activity: OK
No SEC red flags
Risk/Reward -3.8=NEGATIVE