UPDATE: UBS Upgrades Terex (TEX) to Buy
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UBS analyst Steven Fisher upgraded Terex (NYSE: TEX) from Neutral to Buy with a price target of $60.00 (from $45.00).
The analyst comments "We are modeling a 2025 peak 6% above 2018 levels, while consensus is forecasting 2025 5% below 2018. Our 2023/24/25 combined Access/AWP revenue estimates for Oshkosh and Terex are 3%, 8%, and 12% above consensus, respectively. Our conviction is predicated on robust responses to our Rental Survey, strengthening macro indicators, and commentary from construction equipment dealers, which combine to give us confidence in the inflection point, and the potential strength of recovery. In the medium to longer-term, our revised Non-res Construction Outlook has private construction spending inflecting to the positive and we expect a strong cycle of manufacturing investment to drive multiyear upside. Fleet age has risen since 2018, so there could be more room to bring fleet age down with newer, higher tech equipment. Moreover, we believe increased penetration of aerials in China could add another ~2-3% to our 2025 forecast, and President Biden's infrastructure proposal could add an incremental 3-4% of annual growth, if fully implemented. These factors are not reflected in our current forecasts."
Shares of Terex closed at $45.78 yesterday.
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