2023-05-01 12:10:16 ET
Manitowoc ( NYSE: MTW ) +5.9% in Monday's trading after Wells Fargo upgraded the stock to Equal Weight from Underweight with a $17 price target following a survey of rental/leasing companies.
Analyst Seth Weber said Wells Fargo's recurring crane survey shows firming trends for a category that has lagged but well positioned for infrastructure- and stimulus-related projects.
Upside catalysts according to Weber include better than expected crane orders, as rising end-market demand supports improving fleet dynamics such as utilization and rental rates; stronger than expected non-new crane sales, with positive impact on margin; and balance sheet actions, including accretive M&A.
Potential downside risks include potential for macro headwinds such as rising interest rates and/or financial sector stress to slow or delay new commercial projects; persistent inflation and inability to pass-through costs to customers; and aggressive pricing and/or inventory build by competitors.
More on Manitowoc:
- See financial and valuation comparisons to sector peers
- Oshkosh, Agco, Manitowoc downgraded at Goldman Sachs
- Stock price return: 68% gain YTD, 18% gain in the past 12 months
For further details see:
Manitowoc upgraded at Wells Fargo as crane checks looking up