Ericsson Gains on Credit Suisse Market Outlook: Stockholm Mover
Ericsson AB (ERICB), the world’s biggest wireless-network maker, rose to its highest price in almost six months in Stockholm after Credit Suisse raised it to outperform from neutral, citing prospects for the infrastructure market.
The shares gained as much as 3 percent to 86.15 kronor, the highest on an intraday basis since March 15. Ericsson traded 2.9 percent higher at 86.05 kronor as of 1 p.m. local time, leading the gainers in the OMX Stockholm 30 index.
The wireless network market is poised for a rebound, Achal Sultania, the analyst, wrote in a note to clients today. He raised his price estimate for Ericsson’s shares 43 percent to 100 kronor a share.
“We believe Ericsson is well positioned to benefit from these trends given its installed base” of third-generation and fourth-generation equipment, Sultania said.
The bank also increased its estimate for Ericsson’s 2014 full-year earnings per share by 5 percent to 6.10 kronor. Analysts on average expect EPS of 5.095 kronor in 2014, according to data compiled by Bloomberg.
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