Telefonaktiebolaget LM Ericsson

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Ericsson AB is a Swedish telecom equipment maker providing equipment, software and various services across the world. Ericsson has been founded in 1876 and is headquartered in Stockholm. The group actually employs about 115,300 persons. Moreover, Ericsson has with more than 39,000 granted patents in mobile communication one of the strongest intellectual property rights portfolio in the industry.

Ericsson’s net sales decreased by 2 percent in Q1 2016 to SEK 52.2 billion in comparison net sales amounted to 53.5 billion in Q1 2015. This evolution is due to a weak development in the telecommunication market in Europe and a weak macroeconomic development in some emerging markets. However, sales decrease were partly offset by a substantial sales increase in other geographic area such as North America, Mainland China and South East Asia. Ericsson’s profitability increased during the first quarter of 2016: Operating margin jumped to 6.7 percent, 2,7 percent more than a year before. To stimulate growth and efficiency of the company structural change such as cost reductions were announced by the CEO. These changes might boost growth and earnings in the future. However the future development remains to be seen.

Bloomberg consensus set the 12-month target price to SEK 75.50. As of 30 June 2016, the price per share was SEK 64.30 . Currently, 13 analysts set Ericsson on BUY, 14 on HOLD and 4 on SELL recommendation.