Forecast Of The Day: Ericsson’s Managed Services Revenue

What?

Ericsson’s (NASDAQ:ERIC) Managed Services Revenue rose from around $3.40 billion in 2019 to about $3.50 billion in 2020. We expect the number to rise further to over $3.60 billion in 2021 and to $3.70 billion in 2022. Under the managed services operations, Ericsson essentially takes care of the operations of the network/IT systems of service providers.

Why?

We expect the business to grow in the long run, driven by the transition to 5G networks and the need to manage increasingly complex networks and IT systems.

So What?

We believe the projected growth in Ericsson’s core Networks business and its Managed Services businesses is not priced into the stock yet. We value Ericsson at almost $16 per share, implying an upside of over 30% from the current market price.

See Our Complete Analysis For Ericsson

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