Manitowoc -5.2% as Jefferies downgrades on valuation


Manitowoc (MTW) has been among the top-performing U.S. machinery stocks this year, but today it was one of the worst, -5.2% after a Jefferies downgrade due to valuation.

The firm says its channel checks and conversations with industry participants continue support its belief that cranes - lattice-boom cranes, tower cranes, mobile telescopic cranes, boom trucks - will be a 2015 story.

MTW shares trade at an EV/sales multiple of 137% and an EV/EBITDA multiple of 11.1x on 2014 estimates, significant premiums to the closest competitor (Terex: 80% EV/sales, 8.0x EV/EBITDA).

YTD: MTW +32.3%, CAT +6.6%, TEX +2.3%, JOY -2.9%, DE -3.1%.

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  • CapGoodsAlpha
    , contributor
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    $MTW, $CAT - This is a good call. For clients who took advantage of our thoughts in the August to October time frame and got long in MTW at $19-20 or CAT at $81-83 we think you have made your money in the near-term though CAT could run to $110 or so if China sentiment (and reality) improves.
    2 Apr 2014, 09:10 AM Reply Like
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