Bank of America has raised its recommendation for mining and rock excavation equipment manufacturer Epiroc to buy from underperform, according to a sector review seen by Investing.
The upgrade is driven by expectations of a wave of new copper projects over the next four years. The investment bank identifies nearly 30 projects with investments exceeding 100 billion dollars that are expected to reach final investment decisions.
According to the analysis, this could boost mining equipment order intake by 2 percent in 2026 and 9 percent in 2027.
Epiroc is highlighted as the primary beneficiary, partly because copper accounts for 36 percent of the company's sales. The price target is raised to 330 SEK from 225 SEK.
FLSmidth is also upgraded to buy, while Sandvik and Metso maintain neutral ratings. BofA simultaneously reiterated its buy recommendation for Weir.
Epiroc AB is a leading global manufacturer of drilling, excavation, construction and demolition equipment for the mining, construction and natural resources sectors. Net sales break down by family of products and services as follows:
- excavation, construction and demolition equipment and services (76%): drilling rigs, excavators, loaders, trucks, etc. Net sales by revenue source are divided between sales of services (54.9%) and equipment (45.1%);
- drilling tools and excavator accessories (23.9%): hydraulic concrete breakers, demolition tongs, concrete tongs, hydraulic shears, crusher buckets, grabs, hydraulic compactors, augers, excavator magnets, etc.;
- other (0.1%).
Net sales are distributed geographically as follows: Europe (13.3%), Asia and Australia (29.3%), North America (28.7%), Africa and Middle East (16.1%) and South America (12.6%).
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