ATLKY - Atlas Copco - Always Excellent Almost Always Expensive

• Atlas Copco has been reporting strong financials, led by the semiconductor-driven Vacuum Technique business, but supply issues are impacting revenue and margins.
• Short-cycle industrial may be slowing, but compressor demand should be supported by the energy savings offered by Atlas Copco's portfolio, and LNG is a longer-term opportunity to watch.
• Vacuum demand continues to be supported by strong semiconductor capex spending, but the outlook here could get a little more mixed in the short term.
• Atlas Copco shares look about as attractive as they've been in a long time, but still aren't that cheap, and further derating to long-term valuation averages remains a risk.

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