Wednesday, JPMorgan (NYSE:JPM) altered its stance on Epiroc AB (EPIA:SS) (OTC: EPOKY) stock, moving its rating from Underweight to Neutral. The firm has set a price target for Epiroc at SEK 185.00, maintaining the same target as before the upgrade.
The decision comes after a period of underperformance for Epiroc, with the company's shares declining 7% year-to-date, and lagging behind the MSCI Europe Capital Goods index by 15%. The analyst from JPMorgan noted that the challenges which led to the Underweight rating, including slowing market demand and an overconfident consensus, have largely been realized.
Epiroc, known for its high-quality products and leading position in a structurally attractive market, is viewed by JPMorgan as unlikely to underperform in the long term. The analyst acknowledged that while not all aspects at Epiroc are currently optimal, the worst is believed to be over, prompting the firm to adjust its rating.
By upgrading to Neutral, JPMorgan indicates a shift in perspective, suggesting that the market has now fully recognized the issues that were affecting Epiroc's performance. The unchanged price target reflects a long-term view of the company's value, extending to December 2025.
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