Telefonaktiebolaget LM Ericsson (OM:ERIC B) Dropped, So What Is Behind The Attention Now?
Telefonaktiebolaget LM Ericsson (OM:ERIC B) has been in focus after the company repurchased its own Class B shares between 14 and 18 September 2026 as part of a SEK 15b buyback program.
Despite the recent buybacks and the Nex-Tech Wireless agreement, Ericsson’s share price at SEK96.52 is down 3.77% over the last day and 11.53% over 90 days. Its 1-year total shareholder return of 27.60% and 3-year total shareholder return of 99.01% indicate that longer term momentum has been much stronger than the recent pullback suggests.
Scan Ericsson’s recent buybacks and 5G deals against a curated 40 power grid technology and infrastructure stocks that could be setting up for the next leg of telecom infrastructure demand.
For Telefonaktiebolaget LM Ericsson, the share pullback, alongside buybacks and fresh 5G work with Nex-Tech Wireless, raises a simple question. Are you seeing business fundamentals being repriced here, or just sentiment resetting before the valuation math kicks in?
Most Popular Narrative: 26% Undervalued
On the most followed narrative, Telefonaktiebolaget LM Ericsson screens as undervalued, with a fair value near SEK130.34 against the last close at SEK96.52. This puts the recent share pullback in a very different light.
The full-scale industrialization of AI at the network edge and device level, combined with Ericsson's early investment and leadership in AI-native networking and R&D, places the company at the epicenter of a massive, long-lasting upgrade cycle; this could drive structurally higher capital expenditure from both telcos and adjacent industries, boosting both hardware and software revenue streams for years to come.
See why 3 investors see Telefonaktiebolaget LM Ericsson as 26% undervalued.
Result: Fair Value of SEK130.34 (UNDERVALUED)
Still, Ericsson’s reliance on a handful of big customers, along with ongoing legal and regulatory exposure, could quickly undercut that bullish multiple expansion narrative.
Find out about the key risks to this Telefonaktiebolaget LM Ericsson narrative.
Next Steps
If this mix of buybacks, valuation signals and 5G contracts around Telefonaktiebolaget LM Ericsson feels conflicting, act quickly to review the full picture yourself and weigh the 4 key rewards and 2 important warning signs.
Looking for more investment ideas beyond Telefonaktiebolaget LM Ericsson?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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