Ericsson Stock Forecast: The Headwind of Huawei Is A Tailwind For Ericsson

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.


  • Ericsson’s stock has a price return of 32% since my last buy recommendation. I’m again reiterating this 5G networking-centric stock as a buy.
  • The new U.S. sanctions are a strong headwind for Huawei. Huawei’s problems are to the benefit of Ericsson’s 5G infrastructure deployment business.
  • Huawei’s affordable 5G hardware and software solutions will lose current and future customers due to U.S. government’s threat of severe punishments against Huawei/ZTE equipment buyers.
  • Proof of the ostracization of Huawei is that German firm Deutsche Telekom and Bell Canada has chosen Ericsson for their high-profile 5G infrastructure deployment contracts.
  • Ericsson will only have to contend with Nokia with it comes to 5G deployment on non-China markets. Less competition is always welcome.

ERIC stock forecastRead The Full Premium Article

Subscribe to receive exclusive PREMIUM content Here