Atlas Copco (Hold, TP: SEK185.00) - Still waiting for semis
We are 2% above consensus on Q1 orders, 1% above on sales and in line on adjusted EBIT. We expect the guidance to be for unchanged demand into Q2 and for comments that management has not yet seen any improvement in demand from the semiconductor industry. Although our deviation versus consensus for Q1 is negligible on the group level, we find the margin assumptions for VT somewhat optimistic. We have raised our adjusted EBIT by 4% on average for 2024–2026e. We reiterate our HOLD but have raised our target price to SEK185 (175).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).
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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