Exosens rises 3% after Theon extends supply agreement through 2030

Investing.com -- Barclays upgraded Atlas Copco AB (ST:ATCOa) to “overweight” from “equal weight” and lifted its price target 23% to SEK178 from SEK145, saying the Swedish industrial group is set for a return to mid-single-digit sales growth and stronger order momentum in 2026 after two years of stagnation, sending shares up over 4% on Thursday. 

The analysts said organic sales growth was “virtually nil” across 2024 and 2025 for the compressor and vacuum-equipment maker, a rare period in which Atlas Copco lagged both the wider capital-goods sector and the three largest European electrical peers. 

They expect mid-single-digit sales growth in 2026, supported mainly by the Compressor Technique and Vacuum Technique divisions, which together contribute more than 70% of group EBIT, with Compressors accounting for about 53% and Vacuum about 20%. 

For the compressor segment, Barclays forecasts mid- to high-single-digit order growth in 2026. The brokerage said this is driven by a more favourable replacement cycle across key regions, easier comparisons following weak large-compressor demand, and improving conditions in Gas & Process after two years of declines. 

Rising electricity prices in the U.S. and Europe are highlighted as an incentive for customers to replace equipment, while softer ordering patterns in large industrial compressors over the past six quarters give Atlas Copco a lower base for 2026.  

The Vacuum division, which has recorded no order growth for four years, is expected to recover in 2026 as memory-chip pricing rises amid tight supply. 

Barclays models high-single-digit order growth for Vacuum in 2026-27 and estimates that the number of semiconductor fabrication plants under construction could rise about 30% in 2026, led by Taiwan and the U.S.  

The brokerage said Atlas Copco now trades at about 27x 2026 earnings, a level it views as attractive given the firm’s long-term margin, return and cash-flow profile. 

The company’s valuation premium to the broader industrial sector has compressed to roughly 20%, compared with a 45% post-pandemic average, and its price-to-free-cash-flow multiple is at a multi-year low relative to Schneider Electric, ABB and Siemens.  

Barclays also pointed to the possibility of a special capital return in 2026, noting that Atlas Copco’s balance-sheet position resembles levels seen before previous share redemptions in 2017 and 2021.

The brokerage expects the ordinary dividend to yield about 2%, covered by free cash flow.  

The analysts said risks include slower-than-expected recovery in semiconductor investment and continued pressure in automotive capital expenditure.  

Investing.com -- Amazon is getting ready to expand its delivery network across the United States and end its long-standing partnership with the U.S. Postal Service, according to a Washington Post report on Thursday.

The report, which cited three people familiar with the matter, indicates Amazon is moving toward handling more of its own delivery operations.

The e-commerce giant has been gradually building its own logistics capabilities over the years, including a fleet of delivery vans and drivers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Foreign funds maintained steady inflows into Chinese equities in November, with total inflows reaching $2.3 billion compared to $2.2 billion in October.

Passive funds showed accelerated inflows of $3.8 billion in November, up from $3.2 billion in October. Meanwhile, active funds experienced increased outflows of $1.5 billion, compared to $0.6 billion in the previous month.

Year-to-date cumulative inflows from foreign long-only funds, including both passive and active strategies, improved to $10 billion as of November 30. This marks a significant reversal from the $17 billion in outflows recorded throughout 2024.

The breakdown of year-to-date figures shows cumulative foreign passive inflows reached $25 billion, substantially higher than the $7 billion recorded in 2024. At the same time, cumulative foreign active outflows have slowed to $15 billion, compared to $24 billion in outflows during 2024.

According to the most recent available data, with most funds having disclosed their positions through October 31, Global funds and Emerging Market funds reduced their underweight positions in China to 1.4 percentage points and 3.3 percentage points, respectively. Asia ex-Japan funds shifted to an overweight position in China by 0.8 percentage points.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.