Berenberg favours Weir, Metso in European mining equipment sector
BUZZ-Berenberg favours Weir, Metso in European mining equipment sector ** Berenberg sees a "slow-burn" capital expenditure supercycle for the European mining equipment sector, driven by accelerating investment in gold and copper projects
** The broker initiates Finnish mining equipment maker Metso METSO.HE at "buy", citing downstream order upside, and starts Swedish peers Epiroc EPIRa.ST and Sandvik SAND.ST at "hold" based on valuation and growth concerns
** Berenberg sets a €21 price target for Metso, as its position as a full mineral processing flowsheet provider "allows it to access the broadest addressable market", the broker says
** Epiroc's valuation limits upside potential, while tougher order comparisons are likely to slow Sandvik's growth relative to peers, it adds
** The broker maintains UK engineering firm Weir WEIR.L at "buy" as its preferred name in the sector, while identifying a promising upside for Metso
(Reporting by Marta Frackowiak)
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