Thursday, February 13, 2014

Seeking Alpha: Can Manitowoc Live Up To More Bullish Crane Expectations?

Amidst the still-shaky non-residential construction recovery, investors have cast strong votes in favor of incoming prosperity for Manitowoc (MTW). This crane and foodservice company is certainly among those to benefit if construction equipment orders improve, and such improvement is likely more "when" than "if", but the volatility of that "when" could still make for some interesting times in the stock.

Speaking of the stock, I think an investor's time horizon and dedication to intrinsic value are both pretty relevant here. Unless you think Manitowoc can transform itself into one of the best-run, most-profitable heavy equipment companies over the next decade, discounted cash flow just doesn't suggest much value here. On the other hand, if you believe that a recovery in construction demand will fuel double-digit EBITDA growth over the next three to five years and that that growth merits a double-digit multiple to 2014's EBITDA, there's still upside left in these shares.

Read the full article here:
Can Manitowoc Live Up To More Bullish Crane Expectations?

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