Epiroc shares rated Buy by Jefferies, points to copper deficit and electric machinery shift By Investing.com

On Sunday, Jefferies initiated coverage on Epiroc AB (EPIA:SS) (OTC: EPOKY), a prominent mining equipment manufacturer, with a Buy rating and a price target of SEK250.00. The firm highlighted the potential growth of Epiroc’s aftermarket business, anticipating a multi-year phase of high single-digit organic growth per annum. This growth projection marks the end of a two-year period impacted by weaker Tunnelling and Applications (T&A) earnings.

According to Jefferies, Epiroc’s profit margins appear to have reached their lowest point and are expected to recover. The firm’s projections for the company’s 2026 earnings are 12% higher than the consensus estimates. This optimistic outlook is based on the expectation that Epiroc will benefit from the mining industry’s shift towards electric and automated machinery, coupled with an impending deficit.

The analyst’s statement emphasizes the opportunity for investors to acquire shares of a leading company in the mining equipment sector during a time of significant industry transitions. The coverage initiation and the positive rating reflect Jefferies’ confidence in Epiroc’s market position and future performance.

Epiroc AB has not yet responded to the new coverage and price target. The company’s focus on innovation and its alignment with industry trends towards electrification and automation are likely to be key factors in its future growth, as noted by Jefferies in their coverage initiation. The target price of SEK250.00 provides a reference point for investors regarding the firm’s valuation of Epiroc’s stock.

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