S&P Downgrades TEREX (TEX) From Buy to Hold

S&P downgraded heavy equipment maker, TEREX TEX From Buy to Hold, Friday. The downgrade was based on S&P's fear that Terex might attempt an acquisition after Terex amended its credit agreement with its bank. They kept the price target at $24. TEX is currently trading at $22.67 Here are a few quotes from the report: “Terex announces that it was looking to amend its credit agreement to allow for greater ability to repay debt and make acquisitions. We find this repositioning fairly positive and believe it indicates the company's increasing desire to quickly unlock value from its balance sheet and its $1.5B in cash. That being said, we are concerned that it may also indicate that the company will try to execute a sizable acquisition, which in our opinion would add operational and integration risks. We now see limited upside to our $24 target price following the 24% share price gain in September./ M.Christy, CFA”