Goldman Sachs Upgrades Manitowoc (MTW) to Buy, Sees Trough Valuation

Goldman Sachs upgraded Manitowoc (NYSE: MTW) from Neutral to Buy with a price target of $15 (down from $17), suggesting 41% upside.

The firm sees valuation at "trough" levels and said the emerging US crane recovery trumps their preference for high returns and recurring revenue businesses.

Goldman sees upside given: (1) the US crane capex recovery is emerging, with rising utilizations providing visibility on price and capex increases, (2) strong Food Service execution drives profitability at the trough and potential for further margin expansion, (3) downside for MTW’s Europe business is limited with crane capex only 5% above trough, and (4) valuation is compelling with the stock trading at implied 5x 2012E Crane EV/EBITDA.

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

Shares of Manitowoc closed at $10.64 yesterday.

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