As often happens with companies that serve deeply cyclical end-markets, the timing and magnitude of the swings in Komatsu's (OTCPK:KMTUY)
end-markets have defied expectations. While improving construction and
mining markets have been part of the Komatsu story for a while now, the
strength of the recoveries (especially in mining) has exceeded
expectations, as has Komatsu's operating leverage and execution.
With
major mining companies only starting to reinvest in equipment and
plenty of room to grow in automation-driven investments, I believe
Komatsu could still offer some upside from here. The shares aren't cheap
on a free cash flow basis, but that's not all that unusual and a
forward multiple in line with long-term averages suggests 10% more
upside from here with the possibility of further upward revisions.
Read more here:
Komatsu Offers More Than An Upswing In Mining
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