Sandvik downgraded to Market Perform from Outperform at Bernstein

Bernstein downgraded Sandvik to Market Perform from Outperform with a price target of SEK 222, down from SEK 243. The analyst downgraded three European capital goods stocks and upgraded two. The firm recommends buying electricals, automation and software, and “major valuation disconnects,” funding them with machinery names. The second half of 2023 will see a “mini demand correction and tough comparatives,” so a “crystal-clear growth narrative is needed to outperform,” the analyst tells investors in a research note.