Nordea sees limited opportunities for positive signals from Ericsson in the short term.
It writes the bank in a comment after that on Tuesday have participated in a analytikerlunch with Ericsson’s cfo Carl Mellander.
”When it comes to conclusions, we felt a certain caution and reservation related to short-term advances from the cost reduction program of 10 billion kronor, market conditions and dollarexponeringen,” writes Nordea in a comment.
At the meeting clarified that the savings neither include any adjustments of the business for adjustments related to the decrease in business volumes or no positive effects from disposals.
In addition, the subdued company, the expectations of a decrease in operating expenses during the second half of the year, including as a result of the underlying R & d costs are expected to increase in the near future.
”We can, however, see an improvement in the gross margin before the end of the year,” writes Nordea.
On the positive side lifts Nordea forward that there seems to be opportunities for a more positive development on the US market than the assessment of an unchanged market in years, called it in the analysis.
Nordea, which has the recommendation keep for Ericsson, out at the same time the upside is that the consensus does not believe that the company in 2019 can reach the goal to at least double the 2016 operating margin of 6 per cent.
According to SME Direkt compilation made in the last week expect the analysts in the incision with the operating margin, adjusted basis, improved to 6.5 percent in 2018 and to 9.2 per cent in 2019.
At the reporting date on 18 July plummeted Ericsson by nearly 16 percent, to 51:45 kronor. Since then, the shares have declined further on Wednesday morning is trading at 48:29 kronor, a rise of 0.6% for the day.
Tradingportalen/Agency Directly.
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