UPDATE: Morgan Stanley Initiates Coverage on Terex with Positive Outlook
In a report published Thursday, Morgan Stanley analyst Nicole DeBlase initiated coverage on Terex Corporation (NYSE: TEX) with an Overweight rating and $47.00 price target.
In the report, Morgan Stanley noted, “While we still see a Non-Resi Construction recovery as a strong possibility, we prefer to play this theme through TEX, where it can be thought of as a free option; we also see room for the company to help itself through productivity and restructuring initiatives. Although we are skeptical that the company can achieve its optimistic 2015e goals of $10bn revenue and $5 EPS, the market is not embedding this outcome, and so hitting the target is not required for the stock to work; even missing the EPS goal by 22% could drive a rerating, in our view. We believe that fears of a ‘crane-less' construction recovery are overblown, given the inability of cranes to easily be moved from region to region and expectations of a pickup in NA replacement demand.”
Terex Corporation closed on Wednesday at $28.69.
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