Epiroc (Hold, TP: SEK215.00) - Margins still not meeting forecast
The Q3 report was in line overall, with orders and sales exactly in line with and adj. EBIT -1% versus consensus; however, the underlying margin again fell shy (50–60bp below in both divisions but only 20bp below consensus on group, as corporate costs were lower than expected). Epiroc guided for near-term demand to remain high in mining and remain weak in construction. We have made minor changes to our estimates and reiterate our HOLD, but have raised our target price to SEK215 (205).
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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