BofA Upgrades Epiroc and FLSmidth to 'Buy' Amidst Copper Project Surge
BofA Securities has upgraded Epiroc AB and FLSmidth to 'buy' based on anticipated final investment decisions for large copper projects, which could lead to a 2%-9% increase in upstream mining equipment orders by 2026-2027. This is significant as it suggests potential growth in capital expenditures exceeding $100 billion across nearly 30 copper projects in the coming years.
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BofA Securities has upgraded Epiroc AB from 'underperform' to 'buy' and FLSmidth from 'neutral' to 'buy,' citing an expected surge in copper project final investment decisions over the next four years, projected to boost upstream mining original equipment orders by 2% to 9% in 2026 and 2027. The price targets have been adjusted to SEK330 for Epiroc and DKK600 for FLSmidth, indicating substantial upside potential.
BofA identified five major copper projects, with a combined capital expenditure of $14.5 billion, expected to reach sanction before year-end. Epiroc is positioned to benefit most, with copper comprising 36% of its sales.
The analysis predicts Epiroc's orders will reach SEK56.98 billion in 2026 and SEK64.05 billion in 2027, exceeding consensus estimates. FLSmidth is also projected to see operating profit surpass consensus as it trades at a discount relative to peers. The report suggests downstream equipment suppliers may experience order acceleration starting late 2026.
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