The Analyst

Deutsche Bank analyst Nicole DeBlase made the following rating and price target changes for machinery stocks in the firm's coverage group:

The Thesis

The 3-percent drop in the machinery group over the past month versus a 2-percent gain for the S&P 500 Index makes sense given the substantial steel content in heavy machinery, DeBlase said in a Monday note.

The analyst — though expecting potential retribution in the form of trade war — said the recent dramatic stock price movements within Deutsche Bank's coverage universe are not fully reflective of near-to-medium-term risk in all cases.

The 11-percent and 6-percent price target reductions, respectively, for Manitowoc and Terex reflect greater price/cost risk for the crane industry, the analyst said. 

The Price Action

The one-year/year-to-date price moves of the stocks are as follows:

• Oshkosh: 11.97 percent/a loss of 13.5 percent. 
• Cummins: 3.15 percent/a loss of 9.78 percent. 
• PACCAR: a loss of 5.06 percent/a loss of 7.19 percent. 
• Terex: 22.89 percent/a loss of 20.6 percent. 
• Manitowoc: 15.66 percent/a loss of 27.3 percent. 

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