Ericsson (NASDAQ:ERIC) Reaches New 12-Month High – Still a Buy?

Ericsson (NASDAQ:ERIC) hit a new 52-week high during trading on Friday . The company traded as high as $11.39 and last traded at $11.3810, with a volume of 21575 shares. The stock had previously closed at $11.29.

Key Headlines Impacting Ericsson

Here are the key news stories impacting Ericsson this week:

• Positive Sentiment: Ericsson announced the world’s first live 6G pre‑standard over‑the‑air session at its Plano, Texas site, demonstrating cloud‑hosted LLM processing for robotics and real‑time video over new centimeter‑wave spectrum and confirming plans to manufacture next‑gen 6G equipment in the U.S. — a milestone that bolsters Ericsson’s leadership in next‑generation networks and could drive future product cycles and government/enterprise spend. U.S. at the forefront with world’s first live 6G trial by Ericsson in Texas
• Positive Sentiment: Ericsson and NTT DATA struck a multi‑year strategic partnership to scale private 5G, edge AI and “physical AI” for enterprises — offering fully managed global private 5G services to move customers from pilots to production, which supports recurring managed‑services revenue and expands addressable enterprise market opportunities. NTT DATA and Ericsson Team Up to Scale Private 5G and Physical AI for Enterprises
• Positive Sentiment: Ericsson demonstrated an ISAC (Integrated Sensing and Communication) proof‑of‑concept for drone detection using its massive‑MIMO radios at its Texas HQ — a capability that opens commercial, public‑safety and defense use cases and could lead to new sensor/upgrade revenue streams. U.S. shows ISAC leadership as Ericsson demonstrates breakthrough drone detection
• Positive Sentiment: Investor commentary is shifting toward fundamentals: a Seeking Alpha piece emphasizes Ericsson’s improving free cash flow and suggests underlying financials may be stronger than headline volatility implies, supporting longer‑term investor confidence. Ericsson: Free Cash Flow Over Headlines
• Neutral Sentiment: MasOrange selected Ericsson to unify its 5G Standalone core — a customer win that adds to Ericsson’s rollout backlog but appears incremental versus the larger strategic deals announced this week. MasOrange to unify 5G SA core with Ericsson
• Neutral Sentiment: Vonage (part of Ericsson) will showcase network innovations at Mobile World Congress 2026 — useful for visibility and enterprise pipeline but not an immediate revenue catalyst. Vonage Brings Network Innovation to Mobile World Congress 2026

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Citigroup reissued a “neutral” rating on shares of Ericsson in a research report on Friday, January 16th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Ericsson in a research report on Monday, December 29th. Argus raised shares of Ericsson to a “hold” rating in a research note on Monday, January 26th. Finally, Morgan Stanley started coverage on shares of Ericsson in a research note on Monday, February 9th. They issued an “equal weight” rating and a $11.00 price target on the stock. One analyst has rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Ericsson presently has a consensus rating of “Reduce” and a consensus target price of $10.40.

Ericsson Price Performance

The company has a debt-to-equity ratio of 0.26, a current ratio of 1.29 and a quick ratio of 1.08. The stock has a market capitalization of $39.10 billion, a price-to-earnings ratio of 13.18, a PEG ratio of 2.03 and a beta of 0.94. The stock’s 50 day simple moving average is $10.34 and its 200-day simple moving average is $9.39.

Hedge Funds Weigh In On Ericsson

Several hedge funds have recently bought and sold shares of the business. Jones Financial Companies Lllp lifted its position in shares of Ericsson by 12.4% in the third quarter. Jones Financial Companies Lllp now owns 13,017 shares of the communications equipment provider’s stock worth $107,000 after buying an additional 1,441 shares during the last quarter. Hennessy Advisors Inc. raised its stake in shares of Ericsson by 10.3% in the 4th quarter. Hennessy Advisors Inc. now owns 16,324 shares of the communications equipment provider’s stock valued at $158,000 after acquiring an additional 1,518 shares in the last quarter. RNC Capital Management LLC lifted its holdings in Ericsson by 2.5% in the 4th quarter. RNC Capital Management LLC now owns 64,667 shares of the communications equipment provider’s stock worth $624,000 after purchasing an additional 1,576 shares during the last quarter. Geode Capital Management LLC boosted its position in Ericsson by 0.7% during the second quarter. Geode Capital Management LLC now owns 250,389 shares of the communications equipment provider’s stock worth $2,123,000 after purchasing an additional 1,658 shares during the period. Finally, Dorsey & Whitney Trust CO LLC grew its holdings in Ericsson by 7.2% during the fourth quarter. Dorsey & Whitney Trust CO LLC now owns 42,902 shares of the communications equipment provider’s stock valued at $414,000 after purchasing an additional 2,869 shares during the last quarter. 7.99% of the stock is owned by institutional investors and hedge funds.

Ericsson Company Profile

Ericsson AB is a Swedish multinational telecommunications equipment and services company headquartered in Stockholm. Founded in 1876 by Lars Magnus Ericsson, the company designs, develops and sells infrastructure, software and services that enable mobile and fixed-line networks worldwide. Ericsson serves a global customer base that includes mobile network operators, enterprise customers and public-sector organizations across Europe, the Americas, Asia-Pacific, the Middle East and Africa.

The company’s core activities center on building and modernizing network infrastructure, with a particular focus on radio access networks (RAN), core network software, cloud-native solutions and network management systems.