1122 GMT - Ericsson shares are up 34% year to date on a cyclical recovery in its core U.S. radio access network market, but UBS believes the recovery will be short-lived. Structural concerns around the RAN market and disruption from Open RAN technology--which allows telecom operators to create networks using equipment from a variety of suppliers--are likely to shift back into focus and hit sentiment, analyst Francois-Xavier Bouvignies writes. UBS expects U.S. growth to normalize and margins in the networks business to fall to more average levels from 2025 as cost cutting and productivity improvements have already come through while OpenRAN and Chinese competition could also weigh. It raises the stock price target to 57 Swedish kronor from 52 kronor and keeps at sell. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
October 16, 2024 07:24 ET (11:24 GMT)
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