Wachovia Downgrades Terex Corporation (TEX) to Market Perform

October 3, 2008 8:40 AM EDT

Wachovia downgrades Terex Corporation (NYSE: TEX) to Market Perform and decreasing valuation range to $30-33 from $50-53.

Wachovia analyst says, "Our prior earnings growth thesis has hit a wall, and we now expect 2008 to be peak earnings in a potentially deep global recession. We had been expecting H2 2009 earnings growth reacceleration after four consecutive quarters of yr/yr earnings declines (as cranes and mining equipment remained strong and Aerial Work Platforms searched for easier H2 2009 comparisons). TEX is a cheap stock, but is that enough?...In our machinery channel checks, European crane dealers reported weakening conditions for mobile hydraulic cranes and significantly decreased tower crane inquiry activity. With the current long backlog, the industry may enjoy peak demand conditions in the short-term through most of 2009. We had originally been modeling continued strength through 2010, but now we are expecting demand contraction in 2010."

Terex Corporation (Terex) is a diversified global manufacturer of capital equipment focused on delivering reliable, customer relevant solutions for the construction, infrastructure, quarrying, surface mining, shipping, transportation, refining and utility industries.

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