Atlas Copco (Hold, TP: SEK530.00) - Headwinds offset by FX and M&A
Although intensified cost inflation and supply-chain issues are likely to put pressure on Atlas Copco’s profitability, we have trimmed our 2022e adj. EBIT by just c1% as positive FX and recent acquisitions should broadly offset these headwinds. High energy prices should benefit demand for some of Atlas Copco’s products in the medium to long term, but we still see downside risk to consensus for VT order intake on peaking semiconductor capex. We reiterate our HOLD, but have trimmed our target price to SEK530 (535).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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.