On Friday, Epiroc AB (EPIA:SS) (OTC: EPOKY) saw its stock price target marginally increased to SEK199.00 from SEK198.00 by Deutsche Bank, while the firm maintained a Hold rating on the company's shares. The adjustment reflects a slightly more optimistic outlook ahead of the company's second-quarter results, which are scheduled to be reported on July 19th.
The bank's analyst pointed to improvements in the fundamentals of the mining sector, noting that demand for both equipment and aftermarket services is expected to remain robust. However, the construction demand is perceived to be weaker. The forecast for the fiscal year 2024 is cautious due to challenges in expanding production among miners and ongoing logistic issues that Epiroc is facing.
Epiroc's second-quarter estimates from Deutsche Bank align with the consensus on group orders, revenue, and adjusted EBIT. The report also includes an updated outlook on the divisional performance, with a specific focus on copper and additional details on Stanley's integration, which will be reflected in the second-quarter figures.
The slight increase in the stock price target to SEK199.00 aligns with Deutsche Bank's current assessment of Epiroc's performance and market conditions. The Hold rating suggests that the bank advises investors to maintain their position in the stock, without prompting immediate action based on the latest analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.