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On Wednesday, Citi analyst Kyle Menges increased the price target for Terex Corporation (NYSE:TEX) shares to $51 from the previous target of $36, while keeping a Neutral rating on the stock. The adjustment follows Terex’s first-quarter performance, which prompted Citi to revise its 2025 adjusted earnings per share (EPS) forecast to $4.95, up from $4.55. According to InvestingPro data, the stock has shown significant momentum with a 20% return over the last week, though current analysis suggests the stock is trading above its Fair Value.
Menges noted the company’s strong quarterly results, highlighting robust bookings across all segments and a more favorable environment due to the easing of tariffs between the U.S. and China. The analyst expressed confidence in Terex’s ability to meet its guided figures and pointed out the potential for growth in the Materials Processing (MP) division. The positive outlook is supported by healthy utilization and quoting activity in North America, as well as signs of improving sentiment in Europe. InvestingPro data reveals the company maintains a "GOOD" Financial Health score, with liquid assets exceeding short-term obligations and a solid current ratio of 2.11.
Despite the positive aspects, Menges mentioned that the visibility in the MP segment is somewhat limited, with only about three months of backlog coverage. Nevertheless, the analyst sees the Environmental Solutions (ES) segment continuing to shine within the Terex portfolio. Terex has indicated good visibility for its Aerials business, although Citi anticipates potential downside risks to demand and margins for Aerials over the next year to year and a half.
The new price target of $51 reflects Citi’s raised estimates and maintains a Neutral stance on Terex stock. This update comes as Terex has demonstrated a solid start to the year and is navigating the current market conditions with a degree of success.
In other recent news, Terex Corporation reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.83, compared to the forecasted $0.52. Despite a slight revenue miss, with actual revenue at $1.2 billion versus the expected $1.24 billion, the company demonstrated strong operational efficiency and product innovation. The backlog increased by 13%, indicating robust future demand. Additionally, Terex is maintaining its full-year EPS guidance, projecting between $4.70 and $5.10, even in the face of tariff impacts. In another development, Baird analysts upgraded Terex’s stock rating from Neutral to Outperform, raising the price target from $48 to $66. The analysts at Baird foresee a potential turnaround in the company’s earnings, particularly by 2025, which could lead to a revaluation of the stock. This upgrade reflects a positive outlook on Terex’s potential for earnings recovery and stock performance. Investors will likely keep a close watch on Terex’s performance as it navigates these recent developments.
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