NEW YORK (TheStreet) -- Ericsson (ERIC) shares are down -1.2% to $11.95 in pre-market trading on Thursday after having coverage initiated with a "hold" rating by analysts at Jefferies (JEF).
The firm believes that the company remains in transition following comments made by CEO Jean-Cleade Geha stating that the company was in negotiations to manage Verizon (VZ) and AT&T's (T) wireless networks.
Must Read: Warren Buffett's 25 Favorite Stocks
TheStreet Ratings team rates ERICSSON as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ERICSSON (ERIC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."