SEB cut target for Ericsson stock from SEK 122 to SEK 120

Published on 10/08/2026 at 11:15 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Ericsson stock was at EUR 8.46 on October 8, 2026, down 0.47 percent from EUR 8.50. Third-quarter results are due October 15, 2026 before the market opens.

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Ericsson (SE0000108656) stock was at EUR 8.46 at Lang & Schwarz on October 8, 2026 at 11:09 a.m. CEST, down 0.47 percent from the prior close of EUR 8.50. Affarsvärlden reported on September 29, 2026 that SEB had cut its Ericsson target to SEK 120 from SEK 122 while reiterating a Buy rating.

Target cut meets a results test

The target reduction gives the October 15 report greater importance because investors will receive fresh evidence on revenue recovery and margins. Ericsson's investor calendar places the third-quarter report before the market opens on October 15, 2026, according to the company's Investor Relations page.

The near-term comparison is demanding. Ericsson's second-quarter 2026 reported sales fell 6.00 percent year over year to SEK 52.70 billion, while the adjusted gross margin rose to 48.40 percent from 48.00 percent, as Zacks reported on October 6, 2026.

Margin guidance sets the hurdle

Ericsson's own third-quarter references point to adjusted gross margin of 48.00 percent to 50.00 percent, leaving execution and product mix as the key operating tests. The company also expects Networks sales growth to exceed its three-year average seasonality of 1.00 percent, while current consensus calls for 6.00 percent growth, according to Ericsson's current-quarter data points.

The margin picture is balanced by a difficult revenue backdrop. Zacks said the second-quarter sales decline reflected softer carrier spending and lower IPR licensing revenue after a non-recurring licensing settlement in the prior-year comparison, while Cloud Software and Services recorded 5.00 percent organic sales growth.

Buybacks add a capital-return signal

Ericsson also repurchased 9.37 million Class B shares for SEK 872.20 million during September 28 to October 2, 2026. The transactions were part of a buyback program of up to SEK 15.00 billion running through March 31, 2027, according to PR Newswire on October 5, 2026. Buybacks support shareholder returns, but the next report still has to show whether margin resilience can offset weaker top-line demand.

Ericsson stock stays below the target

At EUR 8.46, Ericsson stock was trading below the prior Lang & Schwarz close of EUR 8.50 on October 8, 2026, with the daily change at minus 0.47 percent. The reference price was in trading at Lang & Schwarz at 11:09 a.m. CEST.
The further course of trading is shown by the continuously updated real-time quote of Ericsson stock.