Citi cuts Sandvik to 'neutral' based on balanced risk-reward

Epiroc AB

13/04/2026 12:14

** Citi downgrades Swedish industrial engineering company Sandvik SAND.ST to "neutral" from "buy", saying the risk-reward profile appears balanced following a share price rally

** Sandvik's shares are up 31% YTD at SEK 393.90 per share

** The brokerage raises its PT by 14% to SEK 405 and says the stock trades at a fair valuation reflecting mid-single-digit percent organic growth prospects beyond 2026

** Citi says market expectations for the Manufacturing and Machining Solutions unit are too low given a rally in tungsten, a key material used in cutting tools

** However, it warns a "negative decoupling of growth in Mining vs Epiroc EPIRa.ST", a key sector peer, could start to weigh on the shares from Q2

** Out of 23 analysts that cover the stock, 12 rate it "strong buy" or "buy", seven "hold" and four "sell", according to LSEG data

(Reporting by Marta Frackowiak)

((marta.frackowiak@thomsonreuters.com))