Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  NASDAQ OMX STOCKHOLM  >  Ericsson AB    ERIC B   SE0000108656

ERICSSON AB

(ERIC B)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Ericsson, Nokia Investors Buy Into Hopes of US Buyout

share with twitter share with LinkedIn share with facebook
share via e-mail
02/07/2020 | 06:36am EDT

By Dominic Chopping

STOCKHOLM--Shares in Telefon AB L.M. Ericsson (ERIC-A.SK) and Nokia Corp. (NOKIA.HE) rose Friday after the Trump administration floated the idea that the U.S. could buy a stake in either of the telecom-equipment manufacturers--a sign that investors at least are taking the gambit seriously.

U.S. Attorney General William Barr told an audience in Washington on Thursday the U.S. and its allies should consider taking a controlling financial interest in the two Nordic companies, as a way of countering the dominance of China's Huawei Technologies Co.

The suggestion from Mr. Barr, a former general counsel at cellphone carrier Verizon Communications--a big customer of Ericsson and Nokia--left many industry watchers wondering how serious the administration was about the idea.

Representatives for Ericsson and Nokia didn't comment, and neither did spokespeople for the governments of Sweden and Finland, where the two companies are based and are national champions. Some investors, though, appeared to embrace the idea, with shares in both companies rising more than 4%.

Cevian Capital, one of Ericsson's largest shareholders, said a deal would make perfect sense for the U.S. if it wanted to be a leader in 5G technology. Cevian has an 8.4% stake in Ericsson.

However, any deal would have to involve a hefty premium to Ericsson's share price, said Christer Gardell, Cevian's managing partner.

"The current share price greatly undervalues the company's long-term fundamentals," he said.

The shares prices of both Ericsson and Nokia have fallen over the past year as the companies battle for control of the burgeoning market for 5G equipment with Huawei.

Mr. Gardell suggested a U.S. investment in Ericsson could pose fewer hurdles than a deal with Nokia because the Swedish company doesn't have state ownership. Finland holds a 3.8% stake in Nokia through its Solidium holding company, which holds stakes in nationally important listed companies. Solidium declined to comment.

"It is clearly better for Sweden, the company, the employees and the shareholders that an American deal is done with Ericsson and not with Nokia," Mr. Gardell said. "The board and management need to drive and handle this question with the highest priority."

Write to Dominic Chopping at dominic.chopping@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
CAPITAL ONE FINANCIAL CORPORATION -4.44% 55.3 Delayed Quote.-43.77%
ERICSSON AB -2.43% 73.76 Delayed Quote.-7.31%
METSO OYJ -4.74% 19.5 Delayed Quote.-41.81%
NOKIA OYJ -6.70% 2.681 Delayed Quote.-12.82%
NORDIC GROUP LIMITED -8.89% 0.205 End-of-day quote.0.00%
VERIZON COMMUNICATIONS -1.44% 52.77 Delayed Quote.-12.80%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on ERICSSON AB
03/27TELEFONAKTIEBOLAGET LM ERICSSON PUBL : MTS selects Ericsson for large-scale netw..
AQ
03/27ERICSSON AI : more than a decade of industry leadership
AQ
03/27A YEAR OF CLIMATE ACTION AND COLLABO : My highlights
PU
03/26TELEFONAKTIEBOLAGET LM ERICSSON PUBL : MTN Benin taps Ericsson AI in managed ser..
AQ
03/26TELEFONAKTIEBOLAGET LM ERICSSON PUBL : Ericsson takes further precautionary meas..
AQ
03/20SMARTONE TELECOMMUNICATIONS : selects Ericsson's 5G to power digitalization in H..
AQ
03/20TELEFONAKTIEBOLAGET LM ERICSSON PUBL : Ericsson's approach towards the coronavir..
AQ
03/19TELEFONAKTIEBOLAGET LM ERICSSON PUBL : Ericsson Annual Report on Form 20-F filed..
AQ
03/19ERICSSON : powering up security
AQ
03/19TELEFONAKTIEBOLAGET LM ERICSSON PUBL : Ericsson to drive industry digitalization..
AQ
More news
Financials (SEK)
Sales 2020 237 B
EBIT 2020 24 376 M
Net income 2020 14 811 M
Finance 2020 27 127 M
Yield 2020 2,32%
P/E ratio 2020 17,0x
P/E ratio 2021 13,7x
EV / Sales2020 0,92x
EV / Sales2021 0,84x
Capitalization 245 B
Chart ERICSSON AB
Duration : Period :
Ericsson AB Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ERICSSON AB
Short TermMid-TermLong Term
TrendsNeutralNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 24
Average target price 93,76  SEK
Last Close Price 73,76  SEK
Spread / Highest target 42,4%
Spread / Average Target 27,1%
Spread / Lowest Target 3,04%
EPS Revisions
Managers
NameTitle
Erik Börje Ekholm President, Chief Executive Officer & Director
Ronnie Leten Chairman
Carl Mellander CFO, Senior VP & Head-Group Function Finance
Erik Ekudden Chief Technology Officer & Senior Vice President
Torbjörn Nyman Director
Sector and Competitors
1st jan.Capitalization (M$)
ERICSSON AB-7.31%24 602
CISCO SYSTEMS, INC.-19.06%164 631
FOXCONN INDUSTRIAL INTERNET CO., LTD.-28.46%36 571
ZTE CORPORATION1.50%25 889
MOTOROLA SOLUTIONS, INC.-16.18%23 172
NOKIA OYJ-12.82%16 712