TEX - Sector Shifts: Bank of America Analyst Forecasts Challenging 2024 for Machinery Downgrades Cummins and GFL Upgrades PACCAR | Benzinga
BofA Securities analyst Michael Feniger changed the rating of several machinery, E&C, and waste management companies.
The analyst expects the EPS beats to be tougher to happen in 2024 owing to slow backlogs, moderating pricing, and inventory challenges in the machinery sector.
Nevertheless, Feniger writes that investors are not likely to fully underwrite lower backlogs in 2025 if indicators are gradually improving and the Fed starts to reduce rates.
Overall, the analyst says that consensus forecasts flat to negative EPS growth for the cyclical machinery sector in 2024, broadly in line with his views, with an expected tightening cycle pressuring demand and earnings, less support for the average price ...