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Stockchase Opinions

Darren SissonsAtlas Copco ABATCO.A-STBUYJan 12, 2026

Vacuum technology is its core expertise.. It is tied to the semi-conductor sector since production needs clean space. It is the best of breed in its category and probably the best capital goods company in Europe. It is under-priced and somewhat under-covered. He has done well with Swedish companies - management companies tend to be shareholder friendly.

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TOP PICK

Global leader in vacuum technology. Dividend increases annualized over 5 years of 10%, 10 years of 6% -- quite solid. Asset light, so fairly high return metrics. Weak last year on exposure to semiconductor market. 

Will benefit from AI spend. Tuck-in acquisitions. 

PAST TOP PICK
(A Top Pick Jun 17/22, Up 56%)

It is in the industrial sector. Although the last quarter was a bit softer there is significant upside.

COMMENT

As a rule, buy it on its native exchange, because the bid-ask spread is tighter due to higher trading volume. An ADR offers less liquidity. Green energy's popularity is a driver for ATCO. He invests in Sweden, but feels neutral about ATCO.

TOP PICK
3-5 year hold. He's taking advantage of currency dislocations and valuations in Europe. Asset light. Industrial applications. History shows that if you don't buy on sale, it's a mistake. Tuck-in acquisitions. Very well run. Growing dividend, attractive valuation. Retraced, and could retrace further. Yield is 2.08%.
TOP PICK
Looking to capture 10% currency differential and 30% decrease in share price. Lots of profitable M&A. Return in equity around 30% with global operations. Current share price presenting good buying opportunity.