With More Macro Uncertainty, Manitex's Ability To Execute Is Key To A Good 2019

Almost a quarter of the way into 2019, there’s still much more clarity about the health of the construction sector – a key component not only of the U.S. economy in general, but also a key driver of roughly half of revenue at Manitex (MNTX). While slower growth (but still growth) seems likely relative to 2018, a lot is riding on improved results in the second half of the year and sentiment is still fragile.

Specific to Manitex, end-market demand in key markets like construction, infrastructure, energy, and utilities should be good enough to drive another year of solid revenue growth, but management’s ability to execute on margins and continue to drive growth in the PM knuckle-boom business is crucial for the stock. The shares do still look undervalued, but investors should remember that this is a low-margin business serving cyclical end-markets and a riskier-than-average stock.

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With More Macro Uncertainty, Manitex's Ability To Execute Is Key To A Good 2019