- (PLX AI) – Ericsson's update on the DOJ deferred prosecution agreement (DPA) brings significant uncertainty and may loom over the stock for a while, analysts said.
- • DOJ informed Ericsson yesterday that the disclosure made by the company prior to the DPA about its internal investigation into conduct in Iraq in the period 2011 until 2019 was insufficient
- • Furthermore, it determined that the company breached the DPA by failing to make subsequent disclosure related to the investigation post-DPA
- • The outcome of this is impossible to predict, but it may take time for Ericsson to resolve the issue, UBS said, placing their rating and price target for Ericsson under review
- • The recent news flow around Ericsson's conduct and lack of disclosures add risks to the equity story, Bank of America said, cutting their price target to SEK 86 from SEK 104 and maintaining an underperform rating
- • The DOJ message to Ericsson suggests the likelihood of further sanctions has increased, BofA said
- • There is considerable uncertainty regarding the scope and size of potential sanctions imposed by the DOJ, potential additional investigations by other regulators and impact on Ericsson's reputation with US customers, BofA said
Quelle: PLX AI