Investors definitely want to believe that the crane market is on its way to recovery, as both Terex (TEX) and Manitowoc (MTW)
are near 52-week highs. Clearly, there is more to these businesses than
cranes, but a quick perusal of sell-side research shows that's where
there is the most optimism. All of that should be good for Manitex (MNTX), a smaller, faster-growing crane player with more of a niche focus.
Manitex
really could use a sustained recovery in the U.S. land drilling market,
and better conditions in the housing and commercial construction
markets wouldn't go unappreciated either. Even so, I think the company
deserves credit for outgrowing its markets and showing solid margin
improvements, even while integrating acquisitions. Given the slightly
better margins and FCF generation, as well as sliding the 10-year DCF
model out a year, I'm modestly increasing my fair value estimate and I
still think Manitex is a good small-cap growth/GARP story.
Please follow this link for the full article:
Manitex In Good Shape For A Slow 2014 Recovery
No comments:
Post a Comment