UPDATE: Goldman Sachs Upgrades The Manitowoc Company to Buy

Goldman Sachs has published a research report on The Manitowoc Company MTW and has upgraded the company from Neutral to Buy and sees a 41% upside for the company. In the report, Goldman Sachs writes, "We upgrade MTW to Buy as the stock's compelling trough valuation and the emerging US crane recovery trump our preference for high returns and recurring revenue businesses at this point in the cycle. We see 41% upside as we believe (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." Goldman Sachs has lowered the price target from $17 to $15 on Manitowoc, which is currently trading up $0.30 from yesterday's $10.64 closing price.