BofA Sees Atlas Copco Share Pullback as 'Attractive' Opportunity; Price Objective Down

08:42 AM EDT, 10/23/2026 (MT Newswires) -- BofA Global Research views the recent pullback in Atlas Copco's (ATCO-A.ST, ATCO-B.ST) stock as an "attractive" opportunity for investors, saying the shares offer good growth at a "very reasonable" price. "Putting a mixed Q3 aside, we continue to expect Atlas to deliver 10%+ org order growth over the next few years (M-HSD through-cycle) with gradual margin expansion & continued bolt-on M&A underpinning a 20% EPS CAGR (low teens through-cycle) at a [greater than] 20% ROCE. We see this as attractive vs the sector and large cap EU Compounders too (BofA estimates latter offer 10% avg EPS growth at 15% ROCE)," analysts wrote in a Friday note. "Yet Atlas now trades at just 22x 2027E P/E (a low only reached recently in 2022 semis downturn and 2025 post-Liberation Day), a modest c. 15% premium to the SXNP (vs historical 15-75% range) and just +7% vs EU Compounders." Against this backdrop, the research firm reiterated its buy rating on the stock, while the price objective was reduced to 250 kronor from 260 kronor, mainly due to lower target multiples as a result of recent market de-rating. BofA also updated its forecasts for the Swedish industrial group, including higher order and sales assumptions for 2026 through 2028.