Ericsson stock price soars 18% to a hit 5-month high on a major 5G deal
- Ericsson it agreed to provide equipment for the SoftBank's Standalone Network
- The latest agreement bring the total number of Ericsson's 5G contracts to 99
- Shares of Ericsson surged a further 5.29% today, after adding over 10% on Friday
Shares of Ericsson (STO: ERIC) soared over 18% in two consecutive trading sessions to trade at the highest levels since 2015. The Sweden-based kit vendor announced it agreed a major deal to supply SoftBank Corp. (TYO: 9984) with 5G radio access network (RAN) gear.
Fundamental analysis: Ericsson continues to win 5G contracts
Ericsson said it has been selected by the SoftBank Corp. to provide equipment for the Japanese giant’s Standalone Network.
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“Ericsson’s dual-mode 5G Core provides SoftBank with capabilities that enable the development of new 5G use cases for mobile broadband users, as well as for enterprises and industry partners,” the kit vendor said in a statement.
“The solution, which includes Ericsson Cloud Packet Core, Ericsson Cloud Unified Data Management and Policy, as well as Ericsson NFVI, will play a key role in SoftBank’s operational transformation”.
The latest agreement between two companies is a result of the long-standing cooperation in the 5G field. Last year, Ericsson also won a contract to equip SoftBank with its access network technology.
“Under our new agreement, we will extend our long-term partnership and provide a high quality and future-proof platform enabling a new wave of innovation for Japanese society,” said Keiichi Makizono, Senior Vice President, CIO of SoftBank.
Ericsson also provided an update on the total number of 5G contracts, which now stands at 99. Moreover, the Swedish mobile infrastructure provider supports 54 live 5G networks globally.
Invezz sees Ericsson as one of the best 5G stocks to invest in as the international pressure on Huawei continues to yield additional opportunities for other 5G equipment providers.
Technical analysis: A new 5-year high
Ericsson stock price has continued its ascendance as each new 5G contract helps the buyers to extend the current bull run. Last month, Invezz reported that Ericsson share price surged higher on multiple 5G contracts, which helped it to surpass the 100 mark.
Shares of Ericsson surged a further 5.29% today, after adding over 10% on Friday. The stock price has now equalled the 2015 high of 111.4 as the buyers eye a trip north of this level. Any move above this zone will result in a new 12-year high. Technically, the next target for the buyers is a zone around the 130 mark.
A new major 5G contract, this time to supply SoftBank Corp with the latest access network gear, has helped Ericsson share price to surge more than 18% and print the highest levels recorded since 2015.