UPDATE: Morgan Stanley Initiates Coverage on Manitowoc on Non-Resi Construction Exposure

In a report published Thursday, Morgan Stanley analyst Nicole DeBlase initiated coverage on

with an Equal-Weight rating and $23.00 price target. In the report, Morgan Stanley noted, “MTW has significant exposure to US Non-Resi Construction, which we view in a favorable light. However, if we isolate to Cranes, given the relative stability of Foodservice, Non-Resi exposure is lower. We estimate that new US Non-Resi Construction represents 19% of the portfolio. We believe that MTW can add 12% and 31% upside to EPS in the event of a modest and robust Non-Resi recovery, respectively. While we do not believe that strategic action is impending, we acknowledge the inherent value in the company's SotP valuation, as we calculate a $21 base case (broadly in line with our price target) and $25 bull case.” Manitowoc Company closed on Wednesday at $20.26.