BUZZ-BofA turns positive on European mining equipment on large copper projects

Sandstorm Gold
Bank of America Corp
Flowserve Corporation

Sandstorm Gold

SAND

0.00

Bank of America Corp

BAC

0.00

Flowserve Corporation

FLS

0.00

** BofA Global Research turns incrementally positive on the European mining equipment sector, citing the imminent start of large copper final investment decisions

** The broker expects downstream orders to "soon mirror upstream strength given usual 1-3 quarter lag" as processing equipment is purchased later

** BofA double upgrades Swedish manufacturer Epiroc EPIRa.ST to "buy" from "underperform", naming it a "copper winner" and the primary beneficiary of large orders due to its surface drilling leadership

** It also lifts Danish peer FLSmidth FLS.CO to "buy" from "neutral", citing the company's underappreciated quality and significant recent margin expansion

** BofA reiterates "buy" on Weir WEIR.L, calling it an "attractive buying opportunity" at a discounted valuation with the highest margins and aftermarket exposure among peers

** The broker stays "neutral" on Sandvik SAND.ST as tungsten volatility hampers margin visibility, and on Metso METSO.HE over valuation concerns


COMPANY

NEW RATING

OLD RATING

NEW PT

OLD PT

Epiroc

buy

underperform

SEK 330

SEK 225

FLSmidth

buy

neutral

DKK 600

DKK 590

Metso

--

neutral

--

€17.2

Sandvik

--

neutral

SEK 400

SEK 395

Weir

--

buy

--

3600p