ERIC · NASDAQ · STOCK
Telefonaktiebolaget LM Ericsson (ERIC) Stock Analysis
$9.55
52W $8.12 – $13.77
58/100
$31.38B
13.0
0.52
Is ERIC Bullish or Bearish?
Bullish.
Innellis AI committee rates Telefonaktiebolaget LM Ericsson (publ) (ERIC) Buy with a composite score of 58/100
, based on 6 analysts with 67% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +17.38 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -2.62 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Value Analyst sees a compelling case — p/e of 12.8 is inexpensive for the broad market. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 12.8 is inexpensive for the broad market — Value
- ROE of 23.5% shows genuine earnings power backing the valuation — Value
- Dividend yield of 5.2% pays you to wait — Value
- EPS growing 42.3% YoY — Growth
- 4 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
Bear Case
- Revenue declining -7.5% YoY -- this is not a growth story right now — Growth
- Price structure making lower highs and lower lows — Technical
- Price structure (HH_HL) contradicts the downtrend -- mixed signals — Technical
- Daily trend (downtrend) conflicts with the weekly trend (uptrend) -- fighting the larger trend — Technical
- Bollinger bandwidth of 15.3% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
58/100
Agreement
67%
Analysts
6
Conviction
Moderate
Sector Rank
Top 56%
of 287 Technology peers
Value Analyst
bullish
70
/ 100 · High confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 12.8 is inexpensive for the broad market
Growth Analyst
bullish
66
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 42.3% YoY
− Revenue declining -7.5% YoY -- this is not a growth story right now
Technical Analyst
neutral
45
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− Price structure making lower highs and lower lows
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 15.3% signals elevated volatility
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
64
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.21 across 14 articles, 14d)
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 56.9 to 57.6.
- New bearish signals: 1 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 2 appeared.
- Bearish pressure eased: 2 signal(s) disappeared.
- Analyst(s) changed stance: Technical Analyst.
Analyst-level changes:
- News Analyst: +1 bullish signal(s).
- Risk Analyst: +1 bearish signal(s).
- Technical Analyst: stance bearish->neutral; score 39->45 (+6); +1 bullish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
52.7
Neutral
MACD Histogram
0.014
Bullish Momentum
Trend Direction
Downtrend
Weekly: Uptrend
Market Structure
Hh Hl
Support
$9.28
Resistance
$10.34
Bollinger %B
0.43
Inside Bands
Price vs Moving Averages
EMA 9
$9.46
Above
EMA 21
$9.61
Below
EMA 50
$9.93
Below
EMA 200
$10.38
Below
Fundamental Analysis
Valuation
92
Growth
81
Profitability
80
Financial Health
63
Cash Flow
70
Valuation
P/E Ratio
13.0×
P/B Ratio
3.06×
PEG Ratio
0.30
Dividend Yield
3.13%
52W High
$13.77
52W Low
$8.12
Quality & Growth
ROE
2439.5%
ROA
957.0%
Gross Margin
4812.5%
Operating Margin
1377.2%
Revenue Growth YoY
—
Debt / Equity
0.38
AI Fundamental Assessment
P/E ratio of 13.0 (inexpensive relative to a 15-40x range); Price-to-book of 3.1x; PEG ratio of 0.3 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 24.4%; Return on assets of 9.6%; Net margin of 10.8%; Gross margin of 48.1%; Current ratio of 1.12 (tight short-term liquidity); Debt-to-equity of 0.38; Free cash flow per share is positive (9.36); Most recent quarter beat estimates by 2.7%; 4 consecutive earnings beats; EPS growth accelerating (-52.1% -> +0.7% QoQ); Analyst estimates falling over recent quarters
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