Jefferies expects aftermarket recovery to boost Nordic mining tools makers

Epiroc AB

23/09/2024 09:41

** Jefferies initiates Danish FLSmidth  FLS.CO  and Swedish
Epiroc  EPIRa.ST  with "buy" ratings, saying it expects mining
equipment makers to enter an aftermarket-driven upcycle
    ** It names Epiroc as its top pick for the sector, alongside
"buy"-rated Weir  WEIR.L  
    ** Jefferies says the recent surge in gold and copper prices
should fuel an aftermarket recovery as mineral production
accelerates, supported by energy transition
    ** This is key for mining equipment makers, which derive
65%+ of revenues and higher proportion of their earnings from
the aftermarket, it says
    ** It starts coverage of Finnish Metso  METSO.HE  at "hold"
and says softening top-line is impacting its ability to expand
margins
    ** Shares in FLSmidth rise 1.7% by 0830 GMT, while Epiroc is
up around 1%

 (Reporting by Elviira Luoma)
 ((Elviira.luoma@thomsonreuters.com))