Atlas Copco (Hold, TP: SEK575.00) - Delivery pain, order gain
Following a change of analyst and the issuance of the Q3 results, we reiterate our HOLD, but have cut our target price to SEK575 (600). Vacuum Technique orders continued to impress, but supply-chain constraints, which are affecting the entire group, restricted sales and earnings. Management indicated that the supply-chain challenges are likely to continue in Q4 and could even worsen QOQ. Although we see limited implications for consensus from the results, the guidance adds some near-term uncertainty.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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