UPDATE: JP Morgan Downgrades Terex to Neutral on Valuation
JP Morgan reduced its rating on Terex (NYSE: TEX) from Overweight to Neutral and reduced its price target from $27 to $26.
JP Morgan commented, "The stock is currently trading at 12.3x 2012E P/E, above the peer- group average of 9.8x. The shares have significantly outperformed YTD (up 75.6% vs. the S&P Machinery Sector up 9.3% and the S&P 500 up 17.8%) and we view the opportunity for additional upside as limited in the near-term. Used rental equipment prices have recently moderated (though they remain at relatively elevated levels), suggesting that an important end market for Terex' products may be slowing. While the outlook for NA construction remains positive, this is tempered by uncertainty in lack of visibility in Europe."
Terex closed at $23.72 on Monday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.