Powerpoint Sector Report - The Capital Goods Data Miner - November 202...

We see strong demand signals across most end-markets and geographies, with a China slowdown in certain segments the notable exception. Supply chain issues are holding back deliveries and pushing up costs, but the situation should not be worse than what we saw in Q3. Cyclical value stocks have rebounded slightly but continue to trade at a near all-time-high discount to quality and growth Our key long ideas are: Assa Abloy, Electrolux, Metso Outotec, Volvo We are cautious on: FLSmidth, Nokian Tyre...

Sector Report - One-offs – they rarely stop at one (part II)

Powerpoint Sector Report - The Capital Goods Data Miner - October 2021

We see strong demand signals across almost all end-markets and geographies, with a China slowdown in certain segments the notable exception. In particular, energy-related sectors, as well as semi-conductors, have upgraded investment plans recently. Quality and growth stocks continue to have an unusually high premium to deep-cyclicals, and we find some interesting names in both camps Our key long ideas are: Assa Abloy, Electrolux, Volvo We are cautious on: FLSmidth, Nokian Tyres, Sandvik

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 v...

Epiroc - Demand firing on all cylinders

Strong orders, mix and cost help margins despite delays EBIT and EPS up 1-3%, increasing visibility High valuation but low risk - HOLD

Epiroc - Equipment backlog building

Orders 9% better, sales 5% below, EBIT 3% below Low equipment deliveries offset by Tools margin jump Q3 was high hurdle for stock, but no reason for concern

Epiroc - Heads-up for report

Epiroc will report its Q3 on Thursday 21 October at 7.30 CET. Conference call at 10.00 CET: / 1.

Sector Report - Selling is easy, delivering is hard

Q3’21 report due on 21 October Estimates adjusted for Dodge divestment Maintain BUY and SEK 350 target price

Epiroc - Solid execution, slightly better value

Q3 report on 21 October at 7.30 CET We expect orders +17%, margin 22.9% (21.7%) Slightly better value but still HOLD

Powerpoint Sector Report - The Capital Goods Data Miner – September 20...

Leading indicators edged slightly down, but indicate some upside to volume assumptions. Metal prices have held steady on high levels and indicate continued support for mining equipment. Also, semiconductor, oil and marine markets show robust demand signals. The sector has de-rated slightly and is on normal levels relative to the broader market. Supply chain issues and higher raw material costs pose a threat to ATH margin expectations though, so pricing power will be a strong differentiator Our k...

Sector Report - ABGSC Capital Goods Seminar

Epiroc - No signs of a mining slowdown

Orders +6%, sales in line, adj. EBIT -1% vs. consensus Adj. EBIT 0% FY’21e, up 2% in FY’22e-’23e HOLD reiterated; TP up to SEK 190 (185)

Epiroc - High order intake but lower margins

6% order beat, sales in-line, adj. EBIT 1% below cons Guides for demand to be “stable at a high level” Strong but not enough to meet high expectations, neg.

Epiroc - Heads-up for report 20 July

Epiroc will report Q2 on Tuesday, 20 July at 11:30 CET. A conference call will follow at 13:00 CET, dial in: SE , UK 4, US

Sector Report - Great demand but costs to hold back margins

Q2’21 report due on 22 July Maintain BUY with SEK 330 target price

Epiroc - Premium has come down – up to HOLD

Q2 report on Tuesday, 20 July, 12:00 CET Stable at a high level; adj. EBIT up 2-4% for ‘21e-‘23e Up to HOLD after recent underperformance