ERICSSON ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at SEK 76.42 SEK in weekly data.
● The close medium term support offers good timing for purchasing the stock.
● The company is in a robust financial situation considering its net cash and margin position.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company's earnings releases usually do not meet expectations.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
