Epiroc (Buy, TP: SEK113.00) - Internal efficiency to drive EBIT
We attended Epiroc’s CMD in Stockholm yesterday, which in our view supports our investment case, which is based on best-in-class EBIT stability (given Epiroc’s aftermarket business), leading position in a niche market set to outgrow underlying mining capex and opex long-term, and a solid balance sheet that could be used for M&A. Key takeaways from the CMD: 1) the logistics programme could drive 3–5% higher EBIT forecasts in 2020–2021, 2) the aftermarket appears set for continued growth, and 3) automation and electrification are driving investments as they improve productivity among customers.
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.