Market Overview

Analyst: Manitowoc's Risk-Reward Profile Skewed To The Upside

Analyst: Manitowoc's Risk-Reward Profile Skewed To The Upside

Manitowoc Company Inc (NYSE: MTW) announced a one-for-four reverse stock split in September, prompting some analysts to revisit their thesis.

The Analyst

Seaport Global Securities' Michael Shlisky upgraded Manitowoc's stock rating from Neutral to Buy with a price target raised from a split-adjusted $38 to $48.

The Thesis

Manitowoc's turnaround initiatives in the past have been more than offset by downside in the crane cycle, but this may no longer be the case, Shlisky said in a Monday note. (See Shlisky's track record here.) 

After a meeting with Manitowoc management, Shlisky said the case can be made for a bottoming of the crane market. There are also observable signs of an operational turnaround, including a reduction in production time for crawlers from one month to one day, he said. 

Although the turnaround in the crane business will likely be a U-shape rather than a V-shape, the longer-term upside potential is greater than the longer-term downside potential, Shlisky said. The stock should be attractive for investors who are "comfortable with a low-growth environment" moving forward, the analyst said. 

Manitowoc's stock multiple deserves a boost, as it now appears the "worst is behind the company from a cycle standpoint" and ongoing initiatives to boost the business are gaining momentum, Shlisky said. 

Price Action

Shares of Manitowoc hit a new, split-adjusted 52-week high of $41.57 on Monday.

Related Links:

7 Stocks To Watch For November 20, 2017

Jim Cramer Advises His Viewers On Starbucks, Manitowoc And Skechers

Photo courtesy of Manitowoc Co.

Latest Ratings for MTW

Nov 2019UpgradesSellBuy
Sep 2019DowngradesMixedNegative
Aug 2019Initiates Coverage OnNeutral

View More Analyst Ratings for MTW
View the Latest Analyst Ratings

Posted-In: Crane Companies Cranes Manitowoc Michael ShliskyAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (MTW)

View Comments and Join the Discussion!

Latest Ratings

TSCOPiper SandlerMaintains119.0
UNPBMO CapitalMaintains200.0
UNPArgus ResearchMaintains205.0
ISRGJP MorganMaintains665.0
EHTHRBC CapitalMaintains132.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at