Ericsson gained just over 1% in London as Jefferies announced that it had upgraded its recommendation on the stock to buy, with a target price raised from SEK 58 to SEK 70.

The research firm - which at the same time lowered its recommendation on Nokia - justifies its decision by the fact that AT&T has chosen the Swedish group for the modernization of its mobile network.

In Jefferies' view, this choice could represent an "inflection point" for the equipment manufacturer, enabling it to grow both sales and profit margins from 2024 onwards.

This agreement could also open the door to other contracts in 'Open RAN' technology.

The analyst adds that Ericsson's increased presence in the USA should also have a positive effect on its geographical mix, which until now has made it dependent on low-margin 5G projects in India.

According to the professional, the current valuation of the stock is attractive and shows real potential for revaluation.


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