GS ups Epiroc to 'buy' as margin recovery gains traction

Sandvik AB

14/05/2026 10:55

** Goldman Sachs upgrades Swedish industrial company Epiroc EPIRa.ST to "buy" from "neutral" as first-quarter results show margin recovery is underway

** The company achieved year-over-year margin growth for the first time in two years, the brokerage notes

** It ups target price to SEK 315 from SEK 230, implying a 16% upside

     ** GS says the Epiroc's Q1 results give confidence that after three years of margin disappointment the group's earnings prospects are finally improving

** It forecasts sector-leading order growth and a sustained expansion in margin and returns as growth accelerates and recent cost savings prove structural

** The broker adds that consistent margin delivery should reward the stock with a higher valuation multiple and help it regain ground lost to rival Sandvik SAND.ST

 (Reporting by Izabela Niemiec)