Jefferies expects aftermarket recovery to boost Nordic mining tools makers
** 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
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