Atlas Copco and ABB have received upgraded recommendations from Bernstein.
According to an analysis reviewed by Bloomberg, ABB has been upgraded to market perform from underperform, while Atlas Copco has been raised to outperform from market perform. The research firm is also resuming coverage of Assa Abloy with a market perform rating.
For Atlas Copco, profits are believed to have bottomed out, and the stock could potentially deliver positive surprises during a recovery. Alongside Kone, Atlas is considered a top pick in the machinery sector.
Bernstein assesses that investments in data centers as well as transmission and distribution could further drive profit upgrades.
Assa Abloy is viewed as having stable development, balanced by limited short-term catalysts.
Atlas Copco is up 4.5 percent, while ABB has risen 0.7 percent and Assa Abloy is up 0.1 percent.
Atlas Copco AB is one of the world's leading industrial groups. Net sales break down by family of products as follows:
- air and gas compressors and electrical generators (66.7%). The group also sells compressed air treatment equipment (filters, dryers, coolers, air tanks);
- construction, drilling, and demolition equipment (16.7%): pneumatic and hydraulic rock breakers, drill hammers, drilling motors, mine carts, upward boring machines, etc.;
- industrial machine tools (16.6%): grinders, punches, impact tools, drills, threaders, pneumatic assembly tools, power drivers, etc.;
Net sales are distributed geographically as follows: Sweden (1.3%), Europe (26.4%), Asia and Oceania (35.9%), the United States (23.2%), North America (3.9%), Africa and Middle East (5%) and South America (4.3%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
