Epiroc (Hold, TP: SEK215.00) - Order backlog building
Following a change of analyst and the issuance of the Q3 results, we reiterate our HOLD and have raised our target price to SEK215 (200). We view the Q3 report as solid, with strong Equipment orders (+43% YOY organically) as the highlight. High mineral prices continued to support opex-related demand. For the long term, we view the company as well-positioned towards structural trends, such as decreasing ore grades, electrification, and automation. However, at a 2022e EV/EBIT of 23x, we view the valuation as fair and the risk/reward as neutral.
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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