BofA Sees Upside Risk for Atlas Copco Amid Positive Peer Read-across

12:03 AM EST, 11/03/2026 (MT Newswires) -- BofA Global Research believes positive updates from Atlas Copco's (ATCO-A.ST, ATCO-B.ST) key industry peers signal upside risk to estimates for the Swedish industrial group's near-term earnings. "Most of Atlas' key peers have provided upbeat outlooks in recent weeks; we believe this is informative given Atlas' limited guidance This reinforces our view Atlas has entered a new phase of strong growth which is not yet reflected in consensus (BofAe FY27/28 org orders +12/10% vs cons +10/7%) or val'n (c. 20% P/E premium to SXNP, at lower end of 15-75% historical range)," according to a Monday note. In the compressors business, analysts observed anticipated sequential demand gains, while projected high order plateaus at its vacuum segment are expected to offset fourth-quarter 2026 order declines. Simultaneously, mega project tailwinds and accelerating automation drive strong upside risk to full-year 2027 consensus forecasts across power and industrial. Against this backdrop, BofA maintained its buy rating and price objective of 250 kronor on Atlas Copco, noting the stock offers an opportunity to "buy quality at a very reasonable price." "We see a 20% EPS CAGR over the next few yrs (low teens through-cycle) at >20% ROCE. Yet Atlas now trades at just 23x '27 P/E, a low only reached in the 2022 semis downturn & 2025 post-Liberation Day. Investors ask if absolute multiples should now be lower due to higher yields. We recognize risk, but Atlas only at c. 10% P/E premium to large cap EU compounders despite higher growth/returns (compounders: 10% EPS CAGR/15% ROCE)," the note said.