(Bloomberg) -- Ericsson’s alleged misconduct in Iraq could trigger fines in the range of $100 million to $300 million, Svenska Handelsbanken analyst Daniel Djurberg said in emailed comments.

Thursday’s news that the US Securities and Exchange Commission had started an investigation into the Swedish company “is obviously negative for the share, but should come as no major surprise to the market,” said Djurberg, who rates the stock a buy.

The analyst also says that he expects a resolution to be reached within 12 months. “The outcome in the DOJ/SEC resolution will become a positive trigger of the future,” he said in reference to the share performance.

Ericsson’s share price is down 18.5% so far this year compared to a 15.5% drop in the benchmark OMX Stockholm 30 Index. Of the 31 analysts covering the stock, 20 rate it a buy, 10 a hold and 1 sell, according to Bloomberg data.

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