Wachovia Upgrades Terex Corporation (TEX) to Outperform; Oversold Related to Liquidity

February 20, 2009 9:11 AM EST

Wachovia upgrades Terex Corporation (NYSE: TEX) to Outperform.

Wachovia analyst says, "Upgrading on expectation that TEX is oversold related to exaggerated liquidity risk concerns. Since its post-close Feb 11th release, TEX has dropped 43% vs. a coverage universe average 14% drop. Most of the relative underperformance likely is related to liquidity risk concerns given most stocks under coverage are exposed to similar demand deterioration. After speaking in detail with management about cross default triggers, the apparent liquidity risk discount seems overdone. While we continue to maintain below consensus views, we believe the stock could pop significantly as liquidity concerns evaporate."

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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