EU and US could reach trade deal this weekend - Reuters
On Friday, UBS analyst Steven Fisher upgraded Terex Corporation (NYSE:TEX), a global manufacturer of lifting and material processing products, from Sell to Neutral with a price target (PT) of $48.00. The upgrade reflects the analyst’s recognition of the company’s significant improvements and management performance over the past five years. According to InvestingPro data, Terex currently trades at a P/E ratio of 12.75 and appears slightly overvalued based on Fair Value calculations. The stock has shown significant momentum, delivering a robust 14% return in the past week.
Fisher noted Terex’s continued progress, stating, "Our view: TEX has been much improved and well run over the last 5+ years, and we expect ongoing initiatives to drive further cycle to cycle improvement." The company’s focus on Environmental, Social, and Governance (ESG) criteria was also highlighted as a factor that diversifies its business, potentially reducing the impact of cyclical fluctuations in the Aerial Work Platforms (AWP) segment. InvestingPro data reveals that Terex has maintained dividend payments for 13 consecutive years and boasts a healthy current ratio of 2.11, indicating strong financial stability. The company has achieved an EBITDA of $539 million in the last twelve months.
Despite the positive aspects of Terex’s operations, UBS acknowledges some challenges ahead. The analyst pointed out that there is earnings pressure anticipated for the year 2025, with six analysts recently revising their earnings estimates downward according to InvestingPro. This outlook suggests a cautious stance from UBS, as the risks and potential rewards for investing in Terex appear to be evenly balanced at this time. The stock’s beta of 1.53 indicates higher volatility compared to the broader market.
The price target of $48.00 implies a neutral view of the stock’s valuation, suggesting that UBS does not see significant upside or downside from the current market price. The upgrade to a Neutral rating indicates a shift in perspective from the previous Sell rating, acknowledging the company’s solid track record and ongoing business initiatives.
Investors and market watchers will be keeping an eye on Terex’s performance as it navigates the forecasted earnings pressure and continues to implement its business strategies and ESG initiatives. The company’s stock will likely continue to be evaluated against its ability to drive improvements and maintain stability through varying market cycles.
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. Although the company experienced a slight revenue miss, reporting $1.2 billion against the expected $1.24 billion, it managed to increase its backlog by 13%, indicating strong future demand. Baird analysts upgraded Terex’s stock rating from Neutral to Outperform, raising the price target to $66 from $48, citing a potential turnaround in earnings per share by 2025. Meanwhile, Citi analyst Kyle Menges also adjusted Terex’s price target to $51 from $36, maintaining a Neutral rating and highlighting strong quarterly results and robust bookings across all segments. The analysts noted a favorable environment due to easing tariffs between the U.S. and China and a potential for growth in the Materials Processing division. Both firms expressed confidence in Terex’s ability to meet its guided figures, despite some concerns about limited visibility in certain segments. Terex remains focused on operational efficiency and product innovation, maintaining its full-year EPS guidance amidst ongoing market challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.