• TickerEPI B
  • ISINSE0011166941
  • ExchangeNasdaq Nordic Stockholm
  • SectorIndustrial Engineering
  • CountrySweden

Analysts

Olof Larshammar

Epiroc (Buy, TP: SEK125.00) - Service and savings set to support

We reiterate our BUY recommendation but have lowered our target price to SEK125 (130). Equipment order intake looks set to trough in 2020e, which we believe should lift valuation multiples as the equity market should then focus more on Epiroc’s best-in-class EBIT stability, leading position in a niche market that is set to outgrow underlying mining capex and opex long-term, and solid balance sheet.

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Jimi Lehtonen
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Huseby Karlsen
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Alexander Aukner ...
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling

Northern Lights

Olof Larshammar

Epiroc (Buy, TP: SEK130.00) - Well placed for 2020

We reiterate our BUY recommendation and have raised our target price to SEK130 (113). Equipment order intake looks set to trough in 2020, which we believe should lift valuation multiples as the equity market should then put more focus on Epiroc’s best-in-class EBIT stability, leading position in a niche market that is set to outgrow underlying mining capex and opex long-term, and a rock-solid balance sheet.

Olof Larshammar

Epiroc (Buy, TP: SEK113.00) - Internal efficiency to drive EBIT

We attended Epiroc’s CMD in Stockholm yesterday, which in our view supports our investment case, which is based on best-in-class EBIT stability (given Epiroc’s aftermarket business), leading position in a niche market set to outgrow underlying mining capex and opex long-term, and a solid balance sheet that could be used for M&A. Key takeaways from the CMD: 1) the logistics programme could drive 3–5% higher EBIT forecasts in 2020–2021, 2) the aftermarket appears set for continued growth, and 3) automation and electrification are driving investments as they improve productivity among customers.

Olof Larshammar

Epiroc (Buy, TP: SEK125.00) - Service and savings set to support

We reiterate our BUY recommendation but have lowered our target price to SEK125 (130). Equipment order intake looks set to trough in 2020e, which we believe should lift valuation multiples as the equity market should then focus more on Epiroc’s best-in-class EBIT stability, leading position in a niche market that is set to outgrow underlying mining capex and opex long-term, and solid balance sheet.

Olof Larshammar

Epiroc (Buy, TP: SEK130.00) - Well placed for 2020

We reiterate our BUY recommendation and have raised our target price to SEK130 (113). Equipment order intake looks set to trough in 2020, which we believe should lift valuation multiples as the equity market should then put more focus on Epiroc’s best-in-class EBIT stability, leading position in a niche market that is set to outgrow underlying mining capex and opex long-term, and a rock-solid balance sheet.

Olof Larshammar

Epiroc (Buy, TP: SEK113.00) - Internal efficiency to drive EBIT

We attended Epiroc’s CMD in Stockholm yesterday, which in our view supports our investment case, which is based on best-in-class EBIT stability (given Epiroc’s aftermarket business), leading position in a niche market set to outgrow underlying mining capex and opex long-term, and a solid balance sheet that could be used for M&A. Key takeaways from the CMD: 1) the logistics programme could drive 3–5% higher EBIT forecasts in 2020–2021, 2) the aftermarket appears set for continued growth, and 3) automation and electrification are driving investments as they improve productivity among customers.

Olof Larshammar

Epiroc (Buy, TP: SEK113.00) - Decent when drilling into the detail

We reiterate our BUY but have lowered our target price to SEK115 (113) following the mixed Q3 results. Our investment case is based on best-in-class EBIT stability given Epiroc’s aftermarket business, leading position in a niche market set to outgrow underlying mining capex and opex long-term, and a solid balance sheet that could be used for M&A. Also, its customers continue to enjoy strong cash flow generation, which should support their capex and opex decisions.

Olof Larshammar

Cherry picking

We expect a relatively muted Q3 reporting season with weaker momentum in orders and sales. In terms of profitability we expect strong margins supported by FX tailwinds and sales still at a high level. We have made one recommendation change, downgrading Atlas Copco to SELL (HOLD). On a 6–12 month view our top-picks are Alfa Laval, Hexpol, SKF, Epiroc, and Volvo.

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Jimi Lehtonen
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Huseby Karlsen
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Alexander Aukner ...
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling

Northern Lights

Alexander Aukner ...
  • Christoffer Wang Bjørnsen
  • Eivind Sars Veddeng
  • Frank Maaø
  • Håkon Astrup
  • Jesper Ingildsen
  • Joachim Gunell
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Hoang Nguyen
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Simen Mortensen

Northern Lights

Christer Magnergård ...
  • Håkon Astrup
  • Jimi Lehtonen
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Martin Hoang Nguyen
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Christer Magnergård ...
  • Jon Masdal
  • Martin Arnell
  • Martin Hoang Nguyen
  • Mattias Holmberg
  • Ole-Andreas Krohn
  • Olof Larshammar

Northern Lights

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