Gronghui, Oct. 24 | Ericsson (ERIC.US) fell 4.87% before the market to 5.27 US dollars. Goldman Sachs analyst Alexander Duval downgraded Ericsson's rating from buy to neutral, cut target stock price from $10.8 to $6.1, and removed the stock from the company's “firm buy” list. Analysts believe that the company's profit growth before interest and tax in cloud software and services and enterprise business is unlikely, while the company's changing regional revenue structure is also putting pressure on profit margins. Duval acknowledged that he was “overly optimistic” about Ericsson's ability to continue driving cost savings for non-core businesses over the past year. Duval told investors in a research report that the market needs to see some evidence that the Vonage acquisition deal has obvious synergies and resolves some outstanding regulatory issues in order to give the company a higher valuation.