ERIC - Ericsson: A Risky Low-Valuation Play To Avoid

2024-03-25 07:00:00 ET

Summary

• Ericsson's stock has experienced a significant drawdown of 62% since April 2021.
• The company recently secured a major deal with AT&T for Open RAN deployments, but the initial excitement in the market has worn off.
• ERIC is expected to struggle in 2024 due to global economic conditions, geopolitical uncertainty, and a focus on cost savings by carriers.

The last time that I wrote about Swedish network solutions vendor Ericsson ( ERIC ) was in October 2019. I was bullish on the stock because the company, more so than its key Western peer Nokia ( NOK ), seemed to be taking advantage of the 5G upgrade cycle by posting solid results and bumping its next-year revenue outlook by quite a bit....

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