Epiroc (Hold, TP: SEK225.00) - Fool me once, fool me four times
With Q2 marking the fourth consecutive quarter of margin disappointment, we have lost confidence in the story and downgrade Epiroc to HOLD (BUY). Although management stated actions have been taken (reflected in restructuring costs in both divisions), which should help improve margins, we have lowered our 2024–2026e adj. EBIT by 5–3%. At a 2025e EV/EBIT of c17x, we view the valuation as fair. We have cut our target price to SEK225 (245).
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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