Ericsson "buy"
Thursday, January 15, 2004 12:52:21 PM ET
Dresdner Kleinwort Wasser.
LONDON, January 15 (New Ratings) — Analysts at Dresdner Kleinwort Wasserstein maintain their “buy” rating on Ericsson (ERCB). The target price is set to SEK40.
Shares of Ericsson, a Swedish telecom equipments company, are currently trading at SEK16.
According to Dresdner Kleinwort Wasserstein’s research note published this morning, Ericsson’s handsets joint venture, Sony-Ericsson, is likely to report robust 4Q03 results next week. The analysts mention that Sony-Ericsson has benefited considerably from the improved demands momentum across the global handset markets in the recent months. In particular, the company’s best-selling T610 series handset model sales significantly exceeded expectations in the recent past, Dresdner Kleinwort Wasserstein says.
The analysts express their optimism regarding the sustained demand growth in the handsets market over the next several quarters. Dresdner Kleinwort Wasserstein anticipates additional strategic initiatives by Sony-Ericsson in order to increase its shipment capacity in the near future. The company is poised for robust near-term market share gains in the mobile handsets market, further boosted by its forthcoming models, the analysts believe.
The EPS estimates for 2003, 2004 and 2005 are -€0.604, €0.801 and €1.414, respectively. The P/E estimates for 2004 and 2004 are 20.0x and 11.3x, respectively.
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