Epiroc (Hold, TP: SEK225.00) - Mining resilient, construction soft
We believe mining industry demand remained solid and construction soft in Q2. We are in line with consensus on orders and 5–6% above on sales and adj. EBIT. We have raised our 2023–2025e adj. EBIT by 5–8% (FX) increased our target price to SEK225 (215), and reiterate our HOLD. We like the company’s structural long-term growth story, and believe continued strength in Mining should offset weakness in construction, but consider the valuation fair at a 2023e EV/EBIT of 18.5x.
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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