1128 GMT - Ericsson's AT&T contract win is proving a significant coup, as not only is it driving revenue growth, but near-record third-quarter gross margins show the deal wasn't won on price, Citi says. Away from AT&T and the U.S., Ericsson is facing the same industry pressures as others, but is also showing delivery on cost control and working capital, they say. The bank raises its 2025-26 Ebita estimates by 10% and 14% respectively on higher gross margin assumptions. "Ericsson is executing very crisply in a still-challenging environment, but with no/low growth set to continue for the foreseeable future, we struggle to argue for multiple expansion." Citi raises its target price on the stock to 84 Swedish kronor from 71 kronor and keeps its neutral rating. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
October 16, 2024 07:28 ET (11:28 GMT)
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