Lowering Atlas Copco's Uncertainty Rating and Increasing Fair Value Estimate

We lower our uncertainty rating to low from medium and increase our fair value estimate for narrow-moat Atlas Copco. We apply a lower systematic risk adjustment to our cost of equity, which declines to 6.7% from 7.6%. Our fair value increase reflects our lower cost of equity adjustment, higher forecasts following recent results, and the time value of money. Combined, these adjustments increase our fair value estimate to SEK 380 per share from SEK 310 per share.