Manitex Showing Some Operational Improvement, But Slowing Orders Are A Sentiment Risk

Writing about Manitex (NASDAQ:MNTX) earlier this year, I thought that the company would see evidence of stronger demand in 2022, but that real leverage on that demand would likely have to wait due to cost inflation and component availability. I thought that lack of leverage could be a challenge for the stock, and the shares have been weak - falling close to 40% and underperforming other construction-leveraged names like Oshkosh (OSK) and Terex (TEX).

Looking into 2023, I'm bullish on demand from end-markets like infrastructure construction (roads, etc.) and oil/gas, but I'm less bullish on the non-residential and residential construction markets that make up close to half of Manitex's end-market, and likewise, I'm not as bullish on the metals sector. On top of that, while I understand the reasoning of the company's acquisition of an equipment rental business, investors don't tend to like that kind of diversification.

Valuation doesn't look especially demanding, but I see a risk that margin improvements and healthy deliveries in 2023 will be overshadowed by a weaker macro backdrop.

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Manitex Showing Some Operational Improvement, But Slowing Orders Are A Sentiment Risk