Barclays on U.S. Machinery: The New Machinery Normal
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Rating Summary:
15 Buy, 8 Hold, 1 Sell
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Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
15 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
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Barclays on U.S. Machinery: The New Machinery Normal
Barclays analyst, Andy Kaplowitz, said, "We believe Machinery companies are structurally better positioned than at any time in their history to outperform other cyclical sectors in a lethargic/uncertain global economic recovery. We initiate on the US Machinery sector with a Positive rating."
"After testing the Machinery sector under our proprietary "Eight Forces Framework," we think machinery companies have improved their productivity, ability to price, and cyclicality even since 2008. The highest-quality scores go to Joy Global, Caterpillar, Cummins, Eaton, and Deere."
We believe the current machinery upcycle is only in the middle innings...We think Machinery end markets could continue to grow in most scenarios outside of flat-out global recession...We believe increasingly stringent global emissions regulations and focus on alternative energy should continue to drive up engine/component spending, benefitting suppliers such as CMI and ETN."
"We initiate on Caterpillar (NYSE: CAT), Cummins (NYSE: CMI), Deere (NYSE: DE), Eaton (NYSE: ETN), and Manitowoc (NYSE: MTW) with Overweight ratings, and we maintain our OW on Joy Global (Nasdaq: JOYG), which now joins our machinery universe. JOYG and CAT are our favorite picks. We favor higher-quality companies with pricing power that are best positioned to benefit from emerging market growth, secular trends in energy and mining, and increasingly stringent emissions standards. We initiate on Illinois Tool (NYSE: ITW), AGCO Corp (Nasdaq: AGCO), Paccar (Nasdaq: PCAR), Navistar (NYSE: NAV), and Terex (NYSE: TEX) with Equal Weight ratings."
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Barclays analyst, Andy Kaplowitz, said, "We believe Machinery companies are structurally better positioned than at any time in their history to outperform other cyclical sectors in a lethargic/uncertain global economic recovery. We initiate on the US Machinery sector with a Positive rating."
"After testing the Machinery sector under our proprietary "Eight Forces Framework," we think machinery companies have improved their productivity, ability to price, and cyclicality even since 2008. The highest-quality scores go to Joy Global, Caterpillar, Cummins, Eaton, and Deere."
We believe the current machinery upcycle is only in the middle innings...We think Machinery end markets could continue to grow in most scenarios outside of flat-out global recession...We believe increasingly stringent global emissions regulations and focus on alternative energy should continue to drive up engine/component spending, benefitting suppliers such as CMI and ETN."
"We initiate on Caterpillar (NYSE: CAT), Cummins (NYSE: CMI), Deere (NYSE: DE), Eaton (NYSE: ETN), and Manitowoc (NYSE: MTW) with Overweight ratings, and we maintain our OW on Joy Global (Nasdaq: JOYG), which now joins our machinery universe. JOYG and CAT are our favorite picks. We favor higher-quality companies with pricing power that are best positioned to benefit from emerging market growth, secular trends in energy and mining, and increasingly stringent emissions standards. We initiate on Illinois Tool (NYSE: ITW), AGCO Corp (Nasdaq: AGCO), Paccar (Nasdaq: PCAR), Navistar (NYSE: NAV), and Terex (NYSE: TEX) with Equal Weight ratings."
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