Atlas Copco: Upgrading Our Moat Rating to Wide and Fair Value to SEK 140, but Shares Still Pricey

We are increasing our fair value estimate for Atlas Copco by 17% to SEK 140 following the upgrade of our economic moat rating to wide from narrow. Our wide moat rating reflects the strong reputational/brand intangibles and high customer switching costs that provide Atlas Copco with pricing power and shelter its earnings from competitive incursion. Elsewhere, we retain our Medium Morningstar Uncertainty Rating and Exemplary Morningstar Capital Allocation Rating.