Atlas Copco Likely Entering Phase of Strong Growth — Market Talk

About this update from Atlas Copco Ab Class A

Atlas Copco's second quarter is expected to show the company entering a new phase of strong growth, driven by demand from the semiconductor industry and parts of its compressor business, Bank of America Securities analysts write in a note. Organic order growth should illustrate this most clearly--BofA forecasts 13% versus consensus at 8%. The bank also sees slightly faster organic sales growth than consensus, supporting quarter-on-quarter margin expansion and adjusted EBIT of 9.31 billion Swedish kronor, 2% ahead of consensus. "We think this will underpin strong near-term share price performance given investor nervousness following weaker-than-expected Q1 orders." The bank raises its price objective on the Swedish industrial company's stock to 240 kronor from 220 kronor. Shares rise 2.6% to 193.15 kronor. ([email protected])

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