What Caught Our Eye This Week: EMEA Top Reads

Research evidence excerpt

What Caught Our Eye This Week: EMEA Top Reads

Accessible version

What Caught Our Eye This Week

EMEA Top Reads

Mining Equipment: Upgrade Epiroc and FLS to Buy 07 June 2026

Alex Jones and Tore Fangmann turn more positive on mining equipment (see Mining Equity

note) due to the prevalence of large copper orders. They upgraded Epiroc to Buy (from Europe

Underperform, PO up to SEK330 from SEK225) and FLS to Buy (from Neutral, PO up to Eric Lopez >>

DKK600 from 590), while reiterating their Buy rating on Weir. The team remains more Head of EMEA Equity Research

cautious on Neutral-rated Sandvik and Metso due to short-cycle/tungsten and MLI+44 (UK)20 7996 4143

valuation issues respectively. Alex expects Epiroc to be the primary upstream beneficiary eric.j.lopez@bofa.com

of large copper orders, helped by its surface drilling leadership (copper is 36% of sales), Mark Troman >>

driving 2/6% upside to 2026/27 order consensus. He also expects operating leverage ResearchMLI (UK) Analyst

and cost savings to support margins - his ‘27/28 profit estimates are +4/7% ahead of +44 20 7996 4194

mark.troman@bofa.com

consensus. For FLS, Tore thinks the valuation at 10.6x ‘27E EV/EBITA (c.25% discount to

Robyn Dawson >>

peers) fails to reflect (i) likely order acceleration from late 2026 onwards, (ii) +800bps of Research Analyst

margin expansion vs 2023 and (iii) it being a ‘pure-play’ mining equipment supplier. MLI (UK) +44 20 7996 2521

Tore’s operating profit forecasts for FLS are 2-6% ahead of consensus. robyn.dawson@bofa.com

See Team Page for List of Analysts

Compass Group: Assessing the data center TAM, Buy

Kate Xiao believes data center (DC) servicing presents the next growth opportunity for

Compass, with double-digit potential profit upside (see Compass note). With our global