0929 GMT - Ericsson delivered strong results, with a sharp increase in sales and good cost control supporting resilient gross margins, UBS analyst Francois-Xavier Bouvignies writes. "While clearly positive for the near-term outlook, the sudden acceleration in networks revenues surprised us and may partly reflect equipment purchases brought forward ahead of price increases." The bank therefore continues to see a challenging outlook, with demanding comparatives and inflation constraining customer spending. Price increases are helping offset the impact of rising component costs, but UBS believes further price increases to sustain a 50% networks gross margin could ultimately weigh on demand. It reiterates its sell rating and increases its price target to 73 Swedish kronor from 68 kronor. Shares rise 1.2% to 104.97 kronor.