Forecast Of The Day: Ericsson Managed Services Revenue

+63.50%
Upside
5.91
Market
9.66
Trefis
ERIC: Ericsson logo
ERIC
Ericsson

What?

Ericsson (NYSE:ERIC) Managed Services Revenue declined from around $3.4 billion in 2019 to $3.13 billion in 2021. However, Trefis expects the metric to grow to about $3.26 billion by 2023.

Why?

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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 remain positive on ERIC stock with a $9.50 price estimate, which is about 50% ahead of the current market price.

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

 Returns Dec 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 ERIC Return -8% -46% 0%
 S&P 500 Return -6% -20% 71%
 Trefis Multi-Strategy Portfolio -6% -23% 212%

[1] Month-to-date and year-to-date as of 12/23/2022
[2] Cumulative total returns since the end of 2016

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