Terex: Buy At Cycle Trough For A Double As New CEO, Merger, Highway Bill Play Out
Prati Management • 23 Comments
Prati Management • 23 Comments
Terex: The Return Of The King
Money Green • 23 Comments
Money Green • 23 Comments
Mon, Oct. 24, 6:58 PM
- 3M (NYSE:MMM) is upgraded to Overweight from Equal Weight and a $194 price target at Barclays, part of the firm's more optimistic outlook in the U.S. multi-industry sector that prompts several stock upgrades.
- Now is an attractive entry point for the overall group, Barclays believes, based on a view that the negative earnings revision cycle is nearing an end, greater visibility on key end-markets - particularly non-residential construction and general capital spending - and a recovery in emerging markets; $50-plus oil and potential M&A activity helps too, the firm says.
- Barclays says 3M is the largest emerging market exposed name it covers (at 35% of sales), and it believes an emerging market recovery is taking place, particularly in places where 3M has been hit hard, notably Brazil; also, the recent rally in emerging market currencies will help 3M in an outsized manner.
- In addition to 3M, Barclays upgrades WABCO Holdings (NYSE:WBC), ITT Industries (NYSE:ITT), Rexnord (NYSE:RXN) and Rockwell Automation (NYSE:ROK) to Overweight from Equal Weight; however, the firm downgrades Actuant (NYSE:ATU) and Terex (NYSE:TEX) to Underweight from Equal Weight.
Fri, Oct. 14, 2:29 PM
- Terex (TEX +5.1%) enjoys strong gains after BofA Merrill Lynch upgrades shares to Buy from Neutral, saying TEX will have “unprecedented financial flexibility” following the divestiture of its material-handling and ports-solutions division to Konecranes.
- BofA says TEX's Konecranes stake is “deeply in the money,” as it is set to receive $770M net cash for segment sale, plus a 25% equity stake in Konecranes worth $680M, or 26% TEX’s current market cap; the firm also sees potential upside on operational synergies if TEX opts to hold the stake.
- The firm also says activist participation may motivate further restructuring at TEX.
Thu, Oct. 13, 4:56 PM
Tue, Sep. 6, 9:33 AM
- Konecranes (OTC:KNCRF) is launching the sale of its German unit Stahl, which it has to divest to get regulatory clearance for the acquisition of the crane and container handling segment of Terex (NYSE:TEX), Reuters reports.
- The company has asked advisory boutique MCF Corporate Finance to find a buyer for the unit which had 2015 EBITDA of about €30M on sales of €145M.
- Tentative bids, which may be valued at about €280M-€320M, are due in October.
Mon, Aug. 8, 11:12 AM
- Konecranes (OTC:KNCRF) has gained the conditional approval of the European Commission for the acquisition of Terex's (TEX -0.2%) crane and container handling segment after committing to selling its Stahl global business.
- The move was considered sufficient to preserve competition in Germany and France, the European markets most affected by the merger.
- The Commission also said that the deal cannot be completed before it has approved the buyer of the assets put up for sale.
Mon, Aug. 1, 6:00 PM
Sun, Jul. 31, 5:35 PM
- ADUS, AEGN, AEIS, AMKR, APU, ARE, ATW, BDE, BLKB, CEMP, CGNX, CHGG, CKEC, CONE, CUTR, DAC, DNB, ENH, ENSG, EXAC, FTR, GGP, GKOS, GPRE, HTA, IDTI, ININ, IPHS, KMT, LNT, MCEP, MTGE, NGHC, NLS, OFIX, OGS, OLN, PLOW, PPS, PQ, QUAD, RAIL, RXN, RYAM, SBRA, SYKE, TEX, THC, TNET, TREX, TSE, TTOO, TXRH, UGI, VECO, VNO, WMB, WSTC, XOXO
Thu, Jul. 28, 1:58 PM
- Terex (TEX +1.6%) shares spike as much as 4% in response to a CNBC report that Marcato Capital has taken a 5.1% stake in the company and may push for a spinoff and restructuring.
- The stake is based on Marcato's belief that TEX is worth more than its current price, and that selling certain parts of its industrial business and streamlining others through restructuring, cost savings and other measures could improve margins substantially, according to the report.
- Marcato is said to think highly of TEX CEO John Garrison Jr., which could ease discussions between the hedge fund and the company.
Wed, Jul. 20, 7:54 AM
Fri, Jul. 15, 9:52 AM
Wed, Jun. 8, 3:58 PM
- Terex (TEX +0.4%) is added to Goldman Sachs' America’s Buy list with a $27 price target, as the firm sees "significant scope" for upside from restructuring.
- Goldman says it likes TEX's opportunities to significantly reduce the manufacturing footprint in its cranes business, reduce leverage if the proposed MHPS divestiture closes, and explore strategic alternatives for the construction equipment business.
- The firm sees potential for at least 400 bps of margin improvement from restructuring in its cranes segment, and says the MHPS divestiture, if successful, would not only move the company to a net cash position but could significantly improve TEX's balance sheet.
Wed, Jun. 1, 8:21 AM
- China's foreign exchange regulator discloses that Zoomlion's (OTCPK:ZLIOY) bid for Terex (NYSE:TEX) did not have to face a foreign currency hurdle, but was rather terminated solely based on price.
- Zoomlion dropped its $3.4B bid for Terex last week, clearing the way for a smaller deal between Terex and Finland's Konecranes (OTC:KNCRF).
Tue, May 31, 3:58 PM
- Terex (TEX +1.4%) is downgraded to Equal Weight from Overweight at Morgan Stanley, which says it sees limited upside to TEX shares following last Friday's termination of Zoomlion's takeover bid for the company.
- The firm thinks TEX's current 20%-plus discount to the machinery group on a P/E basis is justified, given a still challenged underlying operating environment for the remaining company, as well as historically uneven company execution, both of which return to the forefront of the investment debate following the removal of the M&A bull case.
Fri, May 27, 12:45 PM
Fri, May 27, 11:49 AM
- Terex (TEX -16.3%) tanks as much as 20%, as Zoomlion's (OTCPK:ZLIOY) terminated takeover bid for the company appears to surprise the market.
- The move clears the way for TEX's planned $1.3B disposal of its Material Handling and Port Solutions segment to Konecranes (OTC:KNCRF), which had wanted a TEX takeover of its own; earlier this month, Konecranes negotiated the purchase of only the segment, the asset which it had always wanted most.
- "After many months of discussions, Zoomlion was unable to provide a fully financed, binding proposal for the purchase of Terex with or without MHPS," TEX says.
- Heard On The Street's Abheek Bhattacharya says Zoomlion's sudden withdrawal, combined with Anbang's mysterious end to its bid for Starwood Hotels, might prompt other potential takeover targets to "grill their Chinese suitors on whether they have the cash, or are truly willing to pay the price."
Fri, May 27, 9:12 AM