DnB Markets - Atlas Copco AB Class A (ATCO A) Atlas Copco (Buy, TP: SEK205.00) - Harness the vacuum

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DnB Markets

Mattias Holmberg

EUR 454.34 For Business Accounts Only

Atlas Copco (Buy, TP: SEK205.00) - Harness the vacuum

We have upgraded Atlas Copco to BUY (HOLD), as we believe current semiconductor market uncertainties are well reflected in the stock price and that demand will return throughout 2025e. Although not inexpensive, the valuation looks reasonable to us at a 2025e EV/EBIT of c20x, as we expect improved end-market sentiment in the coming year and see strong long-term growth prospects. We have raised our 2025–2026e adj. EBIT by 5% on average (mainly due to FX), and thus have raised our target price to SEK205 (195).

13/01/2025 1 EN

Underlying

Atlas Copco AB Class A

Atlas Copco provides industrial productivity products and services. Co.'s operations are divided into four business areas: Compressor Technique (provides compressors, vacuum solutions, gas and process compressors and expanders, air and gas treatment equipment and air management systems), Industrial Technique (provides power tools, assembly systems, quality assurance products, software and service through a global network), Mining and Rock Excavation Technique (provides equipment for drilling and rock excavation), and Construction Technique (provides construction and demolition tools, portable compressors, pumps and generators, lighting towers, and compaction and paving equipment).

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SE0011166610 Nasdaq Nordic Stockholm Sweden

Provider

DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

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Analysts

Mattias Holmberg

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Atlas Copco (Buy, TP: SEK205.00) - Harness the vacuum

Atlas Copco (Buy, TP: SEK180.00) - Shelter from the storm in Vacuum

Set for spicy growth

Who stands to benefit?

Yubico (Buy, TP: SEK275.00) - Second noisy quarter in a row

Kongsberg Gruppen (Hold, TP: NOK1450.00) - Less European exposure than peers

Mixed upside potential, despite market recovery expectations

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