Should I Buy ERIC? ERIC 2026 Analysis

Should You Buy Telefonaktiebolaget LM Ericsson (ERIC) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

11.160

1 Day change

2.01%

52 Week Range

11.250

Analysis Updated At

2026/02/04

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Not a good buy right now: price (~11.05) is pushing into nearby resistance (R1=11.17) with momentum starting to cool, so upside from here is less attractive for an impatient entry.
Bias remains constructive (trend is bullish), but the current spot is more of a hold / chase-only-on-breakout area than a clean entry.
Intellectia Proprietary Trading Signals
AI Stock Picker: no signal on given stock today.
SwingMax: No signal on given stock recently.
No recent news catalyst to force immediate repricing; the setup relies mostly on technical continuation rather than event-driven upside.

Technical Analysis

Trend: Bullish structure with SMA_5 > SMA_20 > SMA_200, indicating a sustained uptrend.
Momentum: MACD histogram above 0 (0.119) but positively contracting, suggesting bullish momentum is slowing rather than accelerating.
RSI: RSI_6 at 74.23 (effectively near overbought), implying reduced near-term risk/reward for a fresh entry at current levels.
Key levels: Pivot 10.477; Resistance R1 11.17 then R2 11.599; Support S1 9.784 then S2 9.355.
Practical read: At ~11.05 the stock is close to R1 (11.17); without a decisive push through resistance, the higher-probability move is consolidation rather than immediate upside follow-through.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning: Put/Call open interest ratio 0.43 = call-heavy open interest (generally bullish sentiment/positioning).
Flow today: Put/Call volume ratio 0.0 (calls dominated) but total volume is modest (605 contracts), so sentiment signal is positive but not “loud.”
Volatility: IV 30D 28.24 vs historical vol 35.37 with low IV rank (8.69) and IV percentile (~29.48), implying options are relatively inexpensive vs recent realized movement (market not pricing a big near-term move).

Technical Summary

Sell

Buy

Positive Catalysts

- Financial momentum (latest reported quarter): 2025/Q4 showed strong YoY improvement in revenue, earnings, and margins (see financial section).
- Technical trend is still upward (bullish moving average stack), which supports continuation if resistance breaks.
- Options positioning skewed toward calls (OI Put/Call 0.43), consistent with constructive sentiment.

Neutral/Negative Catalysts

- No meaningful news in the last week: lack of fresh catalysts can reduce urgency for buyers at resistance.
- Near-term technical stretch: RSI near overbought and MACD histogram contracting suggests upside may pause near resistance.
- Wall Street stance remains Neutral (multiple reiterations), limiting the likelihood of a near-term sentiment re-rate driven by analysts.
- No notable hedge fund or insider trend flagged recently (both neutral), reducing “smart money” confirmation.

Financial Performance

Latest quarter: 2025/Q4.
Revenue: +8.96% YoY to 7,375,980,935.45 (top-line growth positive).
Profitability: Net income +105.46% YoY to 911,604,600.57 (major earnings acceleration).
EPS: +107.69% YoY to 0.27 (earnings leverage improving).
Gross margin: 47.98%, up 3.67% YoY (margin expansion supports higher-quality growth).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent actions are consistently Neutral, but with small price target lifts:
- 2026-01-28: Citi PT to SEK 100 (from 98), Neutral.
- 2026-01-26: JPMorgan PT to SEK 102 (from 100.90), Neutral.
- 2026-01-16: Citi PT to SEK 98 (from 95), Neutral.
Summary of Wall Street view:
- Pros: Incrementally improving targets suggest modestly improving confidence; fundamentals (Q4) support the direction.
- Cons: Repeated Neutral calls imply limited conviction that upside is compelling from current levels without clearer catalysts or valuation support.

3 Analyst Rating

Wall Street analysts forecast ERIC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ERIC is 9.33 USD with a low forecast of 6.4 USD and a high forecast of 11 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Buy

2 Hold

1 Sell

Moderate Sell

Current: 10.940

Low

6.4

Averages

9.33

High

Current: 10.940

Low

6.4

Averages

9.33

High

Citi

Neutral

maintain

$98 -> $100

AI Analysis

2026-01-28

Reason

Citi

Price Target

$98 -> $100

AI Analysis

2026-01-28

maintain

Neutral

Reason

Citi raised the firm's price target on Ericsson to SEK 100 from SEK 98 and keeps a Neutral rating on the shares.

JPMorgan

Neutral

maintain

2026-01-26

Reason

JPMorgan

Price Target

2026-01-26

maintain

Neutral

Reason

JPMorgan raised the firm's price target on Ericsson to SEK 102 from SEK 100.90 and keeps a Neutral rating on the shares.

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ERIC Should I Buy

ERIC Should I Buy

Should You Buy Telefonaktiebolaget LM Ericsson (ERIC) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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