Berenberg Launches Epiroc Coverage at Hold Amid Mining Equipment Order Cycles Update

11:03 AM EDT, 08/28/2026 (MT Newswires) -- Berenberg commenced its coverage of Epiroc (EPI-A.ST, EPI-B.ST) with a hold rating and a price target of 290 kronor, as it updated its views on mining equipment order cycles. "We think that Epiroc is the highest-quality play on mining capex in our coverage and, while it would be our preferred upstream play, the company's recent order growth acceleration, combined with earnings growth that is already factored into consensus for 2027, leaves less room for share price upside given the current valuation of 19.6x EV/EBIT," the research firm wrote in its Capital Goods & Industrial Engineering report published Thursday. "That said, we see scope for near-term earnings improvements as its delivery ramp-up progresses, and we note that its operating leverage could support improved margins - thereby enhancing earnings visibility and driving already-strong forecast incremental ROCE higher." Analysts expect the Sweden-based mining and infrastructure equipment company to see revenue and adjusted EBIT compound annual growth rates of 9% and 15%, respectively, over the 2026 to 2028 period. Berenberg also views the company's exposure to exploration as a tailwind, providing Epiroc with access to increasing mining activity levels over the long term.