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Ericsson (ERIC) Stock Analysis

Breakout setup

SellVALUE-TRAP 1/5High Confidence

Technology · Communication Equipment

Sell if holding. Analyst target reached at $12.80 — A.R:R is negative (-2.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (0.5% away).

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and... Read more

$12.80-0.9% A.UpsideScore 4.5/10#16 of 21 Communication Equipment
QualityF-score5 / 9FCF yield69.42%
IncomeYield2.45%(5y avg 3.47%)Payout39.42%sustainable
Stop $12.17Target $12.69(resistance)A.R:R -2.1:1
Analyst target$10.45-18.4%6 analysts
$12.69our TP
$12.80price
$10.45mean
$9

Sell if holding. Analyst target reached at $12.80 — A.R:R is negative (-2.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (0.5% away). Chart setup: Golden cross, above all MAs, RSI 69, MACD bullish. Score 4.5/10, high confidence.

Passes 6/8 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 55d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

Recent Developments — Ericsson

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Strong earnings beat streak (3/4)
Risks
Analyst target reached - limited upside remaining
Near 52-week high (0.5% away)
V7 low-quality RISK_OFF penalty: -0.5 (Q=5.0)

Key Metrics

P/E (TTM)16.0
P/E (Fwd)17.9
Mkt Cap$42.5B
EV/EBITDA
Profit Mgn10.9%
ROE27.0%
Rev Growth-10.3%
Beta0.49
Dividend2.45%
Rating analysts29

Quality Signals

Piotroski F5/9MoatNarrow

Options Flow

P/C0.89neutral
IV44%normal
Max Pain$7-45.3% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Revenue shrinking — -10.3% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
0.0
Earnings Growth
0.0
Declining revenue: -10%
GatesA.R:R -2.1=NEGATIVEMomentum 4.6<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.6>=4.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY 55d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
69 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $11.04Resistance $12.95

Price Targets

$12
$13
A.Upside-0.9%
A.R:R-2.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-29.0% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-14 (55d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is ERIC stock a buy right now?

Sell if holding. Analyst target reached at $12.80 — A.R:R is negative (-2.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (0.5% away). Chart setup: Golden cross, above all MAs, RSI 69, MACD bullish. Prior stop was $12.17. Score 4.5/10, high confidence.

What is the ERIC stock price target?

Take-profit target: $12.69 (-0.9% upside). Prior stop was $12.17. Stop-loss: $12.17.

What are the risks of investing in ERIC?

Analyst target reached - limited upside remaining; Near 52-week high (0.5% away); V7 low-quality RISK_OFF penalty: -0.5 (Q=5.0).

Is ERIC overvalued or undervalued?

Ericsson trades at a P/E of 16.0 (forward 17.9). TrendMatrix value score: 6.1/10. Verdict: Sell.

What do analysts say about ERIC?

29 analysts cover ERIC with a consensus score of 2.7/5. Average price target: $10.

What does Ericsson do?Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to...

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company has a strategic collaboration with T-Mobile US, Inc for the development of AI-native Scheduler with Link Adaptation software. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

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