Capital Goods: Feedback after three deep-dives

Research evidence excerpt

Capital Goods: Feedback after three deep-dives

rejecting long-term behind-the-meter solutions in favour of grid connects when possible. aron.ceccarelli@bofa.com

Tore Fangmann >>

Prysmian: structural imbalance in US fiber market ResearchMerrill LynchAnalyst(DIFC)

Our fiber deep-dive points to sustained tightness in the US due to data center demand +971tore.fangmann@bofa.com4 425 8210

and emerging applications such as drones, with supply growth unlikely to keep pace. We Lorenzo Di Patrizi >>

expect this to manifest in supportive pricing dynamics, and so now see 7/14% upside to Research Analyst

2027/28 group adj EBITA cons on higher Digital Solutions profits. Investors were keen to MLI+44 (UK)20 7995 7626

dig into our supply/demand ests, and assess balances by region, especially as Prysmian lorenzo.dipatrizi@bofa.com

is a less familiar name for many US investors. Most feedback was positive on the near-

term catalyst path (imminent hyperscaler fiber deals, potential US M&A, and subsequent

CMD = Capital Markets DayUS listing) but some EU investors appeared uneasy with valuation (13x ’27E EV/EBITDA).

ENR = Siemens Energy

Mining Equipment: Copping Copper, Epiroc & FLS to Buy

We turned incrementally positive on mining equipment due to impending large copper FID = final investment decision

FIDs; we think >$100bn incremental capex could be sanctioned by 2030 (starts in 2H26).

HV = high voltage

We expect Epiroc (upgraded to Buy from U/P) to be the primary upstream beneficiary,

helped by its high copper exposure; we now sit 2/6% ahead of cons on ‘26/27 orders. LO = long only

Initial feedback agreed with upside from Epiroc’s copper exposure, but questioned the

margin recovery (near-term focus on CMD today), valuation & catalyst path. We also MV = medium voltage