UBS raises Atlas Copco to 'neutral' on cyclical strength
BUZZ-UBS raises Atlas Copco to 'neutral' on cyclical strength ** UBS upgrades Swedish industrial group Atlas Copco ATCOa.ST to "neutral" from "sell", as improving cyclical fundamentals outweigh previous structural concerns
** The brokerage is optimistic about the semiconductor cycle; notes that strong memory-pricing and data centre demand drive capacity expansion for its vacuum technique unit
** Turns more positive on short-cycle markets for the firm's compressor technique division as its latest indicators signal a better backdrop for industrial demand
** While concerns over previous unsustainably strong growth and share losses in China remain valid, UBS says cyclical strength will "overpower our structural concerns"
** Raises PT by 30% to SEK 195 and lifts its 2026-2028 earnings forecasts, adds that the stock's premium valuation is justified given the better outlook for its businesses
** Out of 23 analysts that cover Atlas Copco, 16 rate the stock "strong buy" or "buy", four rate it "hold" and three rate the stock "sell" - LSEG data
(Reporting by Marta Frackowiak)