MS sees better aftermarket sales for European mining equipment makers in 2025

** Morgan Stanley expects European mining equipment makers' aftermarket businesses to see a more supportive environment in 2025, while original equipment recovery will take more time

** "Miners have been given an incentive to maximise production from existing assets, supporting equipment suppliers' aftermarket businesses" - MS

** It predicts 2025 mining capex will be flat year-over-year, followed by a slight decrease in 2026 - still around 30% below the 2012 peak

** It double upgrades UK-based Weir Group WEIR and downgrades Sweden's Epiroc EPI_A

** MS says margin consensus for Epiroc is too high, while its competitive advantage is "less clear", with Sandvik SAND taking market share in surface mining and electric mining equipment

** Weir is expected to exceed its 20% operating margin target by 2026, while its improved FCF leaves room for inorganic growth or share buybacks, MS says

** Although the mining industry is fairly concentrated, MS says further consolidation should not be ruled out