What Manitex (NASDAQ:MNTX)
has done is bold - in ten year's time the company will either be a
well-diversified material handling company that is a thorn in the side
of companies like Terex (NYSE:TEX) and Manitowoc (NYSE:MTW) or it will be a lesson on the risks of overly ambitious growth plans and aggressive use of leverage.
I've
placed my own bet on the former outcome, and I do believe Manitex can
drive double-digit revenue growth and build toward double-digit
operating margins. Growth should come from share gains in larger cranes,
exposure to a construction recovery, and a host of share-growth
opportunities in areas like container handling and industrial cranes. It
is likely going to take at least a few quarters for underlying demand
to improve and there are risks that the costs of operating this expanded
global enterprise will run higher than expected, but I continue to
believe that Manitex can support a low-to-mid double-digit fair value.
Follow this link for more:
Manitex Has Expanded Into The Downturn, But Can It Deliver?
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