MTW - The Manitowoc Company: Recent Correction Is A Good Opportunity

2024-02-19 06:02:55 ET

Summary

• Manitowoc is a global leader in engineered lifting solutions, operating under three major segments: Americas, Europe and Africa, and Middle East, Australia, and Asia Pacific.
• The company reported a decline in revenue and adjusted EBITDA margin in the last quarter of 2023 due to softness in demand in the Europe region.
• Despite short-term challenges, Manitowoc's long-term prospects look promising, with potential growth opportunities in Saudi Arabia and expansion initiatives in North America.
• The company's stock is currently undervalued which makes it a decent buy at the present levels.

Thesis

The Manitowoc Company ( MTW ) is currently experiencing headwinds from its EURAF segment due to softening demand in the European region, however, the robust growth in the MEAP segment and Americas segment is supporting the overall revenue and margin growth of the company. I anticipate that the company's long term outlook is good due to strong backlog levels and continued healthy demand in the MEAP segment driven by a robust pipeline of Giga projects in Saudi. Also, the Americas segment looks good as it continue to increase its aftermarket service business and gain market share, which should drive the company's top line in the coming years....

For further details see: