Heavy equipment stocks have been doing pretty well since the election, and Manitex (MNTX) has gone along for the ride. Up about 75% since my last article, Manitex’s performance slots in pretty well between a handful of better-performing names like CNH (CNHI) and Deere (DE) and worse-performing names like Caterpillar (CAT), Oshkosh (OSK), and Palfinger (OTCPK:PLFRY), while more or less matching Manitou.
I do expect a healthy recovery in 2021 despite a lackluster non-resi construction environment, as fleet operators (including rental companies) emerge from their own capex lockdowns to refresh their fleets. Beyond that, a meaningful infrastructure bill could provide a bigger boost to demand later in 2021 and into 2022, and Manitex still has the company-specific driver of leveraging its knuckle-boom crane business (PM Group) and driving more sales of this under-penetrated (in the U.S.) equipment category.
After the big move in the shares, I would say the stock is more fairly-valued now than definitively cheap, and outsized upside is now tied more to an even stronger/longer recovery cycle and better success driving growth in knuckle-boom cranes – both of which are plausible.
Read more here:
Manitex Past The Worst And Now Leveraged To Equipment Recovery
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