Sunday, March 9, 2014

Seeking Alpha: Manitex In Good Shape For A Slow 2014 Recovery

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

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