Ericsson double-downgraded at Credit Suisse as Nokia lifted to outperform

Credit Suisse upped its rating on Nokia
to outperform from neutral, and lowered Ericsson
to underperform from outperform, as Adithya Metuku assumed primary coverage on both. The analyst said Nokia’s diversified portfolio and the strength in network infrastructure will make it better placed to withstand headwind to wireless capital spending next year, and it has upside potential if it wins back market share in North American RAN. On Ericsson, inflationary headwinds and ongoing R&D investment mean earnings growth is likely to be lackluster, and there’s low visibility on additional fines from the U.S. Justice Department and Securities and Exchange Commission, the analyst said. Nokia’s price target was increased to €6.31 from €5.45, while Ericsson’s target was cut to SEK69 ($6.57 per ADR) from SEK113 ($10.68).