Epiroc's Midterm Revenue Target Appears Conservative; Raising FVE by 10% to SEK 220

Epiroc has enjoyed superior operating metrics and greater resilience than competitors in the mining supply chain through its focus on niche mining equipment used in harsh operating conditions with high aftermarket requirements. Half of the group's revenue is from servicing equipment, which makes Epiroc less dependent on uncontrollable and cyclical factors such as commodity prices to drive demand. Its direct sales model and extensive global sales network have resulted in close customer relationships, fostering future product innovation and creating high barriers to entry. Over one-fourth of its orders are from copper production, a key metal to help decarbonize several industries. Gold is the second-largest commodity, representing 23% of group orders.