BofA Maintains Atlas Copco at Buy Amid Positive Outlook on Compressor Segment

08:49 AM EDT, 10/08/2026 (MT Newswires) -- BofA Global Research retained its buy rating on Atlas Copco (ATCO-A.ST, ATCO-B.ST), expecting the Swedish industrial group to see sustainable high-single digit order growth at its compressor segment over the coming years. "Atlas' growth has inflected yet it has barely re-rated, suggesting investors do not trust its growth is sustainable. We sympathise the semis upturn is likely partly cyclical (c. 25% profit), but we find deeper structural trends are driving Compressor (c. 50% profit). We now see Compressor org order growth staying at 9% in 2027-28 whereas cons fades to just 6% in '27," analysts wrote in a Thursday note. The research firm expects order growth at the company's Compressor Technique business to be mainly driven by US energy efficiency demand, a 10% original equipment volume compound annual growth rate in Gas & Process end markets, and compounding organic growth in service sales. Atlas Copco is also anticipated to consistently deliver an EPS compound annual growth rate of 20%, which BofA said is not yet reflected in the company's valuation. The stock's price objective stands at 260 kronor.