- 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.
For further details see:
Atlas Copco - Always Excellent, Almost Always Expensive