Barclays on U.S. Machinery: Analyst Expects Bullish Tone at Mid-America Truck Show (MATS)

Barclays on U.S. Machinery: Bullish Tone Expected at Mid-America Truck Show (MATS)

Analyst, Andy Kaplowitz, said, "Ahead of the upcoming Mid-America Truck Show (MATS), we retain our positive outlook on trends in the North American Class 8 market and highlight several key themes that we expect to emerge at the conference. Three of the key themes we expect to emerge are: 1) Overall trucker profitability remains healthy; 2) Replacement needs continue to drive demand; and 3) Looking forward, better-than-expected recovery in autos and housing could provide a tailwind to 2012/13 trends, while longer-term, we expect growing interest in the potential for nat-gas powered vehicles."

Kaplowitz prefers component suppliers Cummins (NYSE: CMI) and Eaton (NYSE: ETN), but notes that aside from CMI & ETN, Navistar (NYSE: NAV) and PACCAR (Nasdaq: PCAR) could outperform around the show.

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