JPM ups Sandvik to 'overweight' as mining 'tide to lift all boats'

Epiroc AB

08/10/2025 10:55

** J.P.Morgan upgrades Swedish metal cutting and mining equipment maker Sandvik SAND.ST to "overweight" from "neutral" citing a bullish mining outlook and strong order flow

   ** "We reiterate our positive stance on Mining capex and expect the tide to lift all boats", says the broker, pointing to a strong pipeline of new mining projects

   ** The brokerage notes Sandvik has better order momentum than peer Epiroc EPIRa.ST, likely driven by its sector-high exposure to gold which is currently experiencing high prices

   ** Sandvik has 37% exposure to gold, more than peers like Epiroc (27%) and the average for Original Equipment Manufacturers, OEMs (25%), it notes

   ** JPM maintains a positive outlook on the mining sector, supported by elevated prices for key metals such as gold and copper

   ** Following the upgrade, the broker's adjusted profit forecast for Sandvik in 2027 now stands 6% above the market consensus, leading to a higher price target - it raises PT by 35% to SEK 310

   ** In a separate note, JPM says it expects a solid Q3 report from Sandvik on Oct. 20, forecasting orders, sales, and adj. EBIT better than seen by company-compiled consensus

   ** Out of 22 analysts that cover the Sandvik stock, 12 rate it "strong buy"/"buy", six rate "hold", and four - "sell" - LSEG data

 (Reporting by Marta Frąckowiak)

 ((marta.frackowiak@thomsonreuters.com))