Wells Fargo Downgrades Terex (TEX) to Market Perform; Sees Global Weakness in Cranes

April 5, 2013 7:49 AM EDT Send to a Friend
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Price: $28.70 -5.25%

Rating Summary:
    12 Buy, 10 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 3 | Down: 17 | New: 2
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Wells Fargo downgrades Terex Corp (NYSE: TEX) from Outperform to Market Perform, while adjusting its valuation range from $37 - $40 down to $33 - $36.

Analyst Andrew Casey said that most of the concern lies within the crane segment and believes there is little upside to current expectations. Casey notes that much of the issue is that "further deterioration in EU construction trends...are weighing on Crane demand and could delay an anticipated recovery in the Materials Handling and Port Solutions business."

He continues, "Against this and perceived U.S. Crane demand growth moderation (still good demand but appears to be little acceleration other than in crawler cranes), our concern stems from a recent
channel check that suggested a slower-than-previously anticipated start to construction equipment investment and a sharply negative sentiment shift from EU crane distributors, including described German demand and pricing trend deterioration."

Channel checks also hinted to sluggish demand in the U.S. in terms of capital investment and regional specific order/project delays.

For an analyst ratings summary and ratings history on Terex click here. For more ratings news on Terex click here.

Shares of Terex closed at $31.84 yesterday.


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