Forecast Of The Day: Ericsson’s Network Revenues

+22.79%
Upside
5.51
Market
6.77
Trefis
ERIC: Ericsson logo
ERIC
Ericsson

What?

Ericsson (NASDAQ:ERIC) networks revenues rose from $16.4 billion in 2019 to $20.1 billion in 2020. We expect the metric to rise further to $21 billion in 2021 and to about $22 billion in 2022.

Why?

Relevant Articles
  1. Down 16% This Year Amid A Weak Demand In The U.S., What Lies Ahead For Ericsson Stock?
  2. Is Ericsson Stock A Buy Despite Lull In North America?
  3. Is Ericsson Stock Good Value At $6?
  4. Can Ericsson Recover From Its 9.2% Drop Over The Past Two Weeks?
  5. Forecast Of The Day: Ericsson Managed Services Revenue
  6. Ericsson Stock Looks Unlikely To Sustain Its Earnings Driven Outperformance

Growth in 2020 was driven by increased demand for radio access network equipment in North America and North-East Asia. Future growth is likely to be driven by technologies such as 5G and the Internet of Things.

So What?

The network segment is Ericsson’s largest, accounting for over 70% of total revenue. As network sales continue to scale up it should bode well for Ericsson’s bottom line and its stock, which we believe is undervalued at current levels of $13. We have a $16 price estimate for Ericsson.

See Our Complete Analysis For Ericsson

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market since 2016

See all Trefis Price Estimates and Download Trefis Data here

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams