UBS double-downgrades Atlas Copco on slower near-term recovery

** UBS double-downgrades Swedish industrial group Atlas Copco ATCO_A to "sell" from "buy", seeing a slower recovery in the near-term

** The broker says it expects a slower growth in Compressor Technique (CT) equipment due to a normalising installed base and added pressure from Gas & Process

** It says the Vacuum Technique's (VT) recovery is also likely to be below consensus and it sees a risk of VT losing share in China

** As a result, the broker's FY 2026/2027 EBITA forecasts are 5% and 9% below consensus, respectively

** "In China, state-backed enterprises are advancing rapidly, and we see a potential risk of VT losing share due to policymakers prioritising the local supply chain," the brokerage says

** Atlas' installed base grew unusually fast, the broker says and adds that it expects this growth to revert to long-term trends, potentially resulting in low-to-no growth in new equipment for 2026-27

** The stock is down 2% at 0942 GMT

** Out of 21 analysts that cover Atlas Copco, 13 rate the stock "strong buy" or "buy", seven rate it "hold" and one rates the stock "sell" - LSEG data