UPDATE: Bank of America Merrill Lynch Reinstates Coverage on Terex Corporation

In a report published Friday, Bank of America Merrill Lynch reinstated coverage on Terex Corporation TEX with an Underperform rating and $22.00 price target. BofA Merrill Lynch noted, “We see prospects for earnings disappointment in coming years based on a soft global growth outlook and as Construction and Material Processing offset solid trends in Aerial Work Platforms. Long-term free cash flow recovery may also fall short as Terex is on its fourth consecutive year of spending well below depreciation, which is not sustainable, in our view. This could limit ability to de-lever the balance sheet and reduce opportunities to return cash to shareholders.” Terex Corporation closed on Thursday at $25.78.