UBS on American Heavy Machinery Companies: End markets Continue to Improve, but Still Some Project Delays/Cancellations
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Rating Summary:
9 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
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UBS on American Heavy Machinery Companies: End markets continue to improve, but some indication of project delays or cancellations
Analyst, Henry Kirn, said, "May business conditions continued to show YoY gains, although responses moderated from strong growth in April. Rental rates also continued to increase sequentially, although at a more moderate pace than April."
After UBS performed a rental equipment industry survey, Kirn listed the following points: 1) In aggregate, branch managers are more optimistic on rental rates than they were a quarter ago (26% of managers are more optimistic & 17% more cautious); and 2) 49% of branch managers saw project cancellations/delays stemming from either economic concerns or a lack of credit availability over the last quarter. While this is clearly a warning flag, branch managers are as optimistic on business conditions as they were a quarter ago.
UBS maintains a 'Buy' rating on United Rentals (NYSE: URI), H&E Equipment Services (Nasdaq: HEES), Deere (NYSE: DE), and CNH Global (NYSE: CNH)(PT lowered from $55 to $50). UBS maintains a 'Neutral' on Caterpillar (NYSE: CAT)(PT lowered from $115 to $100), Terex (NYSE: TEX)(PT lowered from $27 to $20) and The Manitowoc Company (NYSE: MTW)(PT lowered from $16 to $12).
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Analyst, Henry Kirn, said, "May business conditions continued to show YoY gains, although responses moderated from strong growth in April. Rental rates also continued to increase sequentially, although at a more moderate pace than April."
After UBS performed a rental equipment industry survey, Kirn listed the following points: 1) In aggregate, branch managers are more optimistic on rental rates than they were a quarter ago (26% of managers are more optimistic & 17% more cautious); and 2) 49% of branch managers saw project cancellations/delays stemming from either economic concerns or a lack of credit availability over the last quarter. While this is clearly a warning flag, branch managers are as optimistic on business conditions as they were a quarter ago.
UBS maintains a 'Buy' rating on United Rentals (NYSE: URI), H&E Equipment Services (Nasdaq: HEES), Deere (NYSE: DE), and CNH Global (NYSE: CNH)(PT lowered from $55 to $50). UBS maintains a 'Neutral' on Caterpillar (NYSE: CAT)(PT lowered from $115 to $100), Terex (NYSE: TEX)(PT lowered from $27 to $20) and The Manitowoc Company (NYSE: MTW)(PT lowered from $16 to $12).
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