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Morgan Stanley Maintains on Manitowoc

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In a report published Friday, Morgan Stanley analyst Nicole DeBlase maintained an Overweight rating on Manitowoc (NYSE: MTW), with a $30.00 price target.

According to the report, the analysts agree that 4Q is likely to be a weak one for MTW – they forecast a $0.03 miss vs. cons driven by Crane. However, they look forward to a year of order acceleration, and would use any earnings day weakness to accumulate shares prior to ConExpo in early March, which is viewed as the next catalyst.

“We forecast $0.31 EPS, a $0.03 miss vs. current cons,” the report noted. “We believe the nexus of our lower forecast is within the Crane segment, where we forecast a 10% Y/Y decline in revenue, implying 3% growth for the full year (below MSD guidance). The reason for our skepticism is the fact that MTW exited 3Q13 with a $568m backlog, which still does not cover our $691m revenue est (so we have embedded a healthy degree of book-and-ship orders). We expect flattish Crane orders of $465m as we heard no signs of activity pickup throughout the quarter. We forecast another strong quarter of Crane margins, 9.6% (+150bps Y/Y). In Foodservice, we project another quarter of 2% core growth (offset by 2ppt Jackson divestiture headwind) and look for a return to Y/Y margin expansion (+30bps to 14.7%) as manufacturing investments pay back.”

MTW closed Thursday at $23.97 with shares trading down at 4.31 percent.

Latest Ratings for MTW

DateFirmActionFromTo
Aug 2019DowngradesOutperformNeutral
Jul 2019DowngradesOutperformSector Perform
Sep 2018UpgradesNeutralOutperform

View More Analyst Ratings for MTW
View the Latest Analyst Ratings

Posted-In: Morgan Stanley Nicole DeblaseAnalyst Color Reiteration Analyst Ratings

 

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