01:30 PM EDT, 04/17/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trim our 12-month target price by $1 to $6, applying an EV/EBITDA multiple of 6.9x to our 2024 estimate, a discount to its five-year historical average multiple at 8.1x, reflecting our slower growth outlook. We lower our 2024 EPS estimate by SEK1.09 to SEK4.81 and cut '25's by SEK0.64 to SEK6.00. ERIC reported Q1 GAAP EPS of SEK0.77 vs. SEK0.45, SEK0.57 above the consensus. Q1 revenue fell 15%; results were driven by 1) a 21% decline in the Networks segment, as customers continue to be cautious with their spending and as India slowed as expected, following a rapid 5G build-out last year, and 2) a 3% decline in the Cloud Software and Services segment, primarily due to descoping contracts and contract exits within Managed Network Services. On a positive note, current levels of network investment are unsustainably low right now and it appears that inventory levels in North America have stabilized, supporting our view that ERIC should return to growth in the second half of the year.