Baird analyst Mircea Dobre downgraded five Machinery companies, citing the Russia and Ukraine war's impact on input costs. According to Dobre, the impact of the Russia-Ukraine war on input costs, notably steel prices, is likely to reduce or even eliminate the positive margin setup previously expected in the second half of 2022 for machinery companies.
Dobre says that the additional margin pressure couples with the potential for order intake moderation relative to challenging prior-year compares and a toughening broader macro environment.
He finds it difficult to see possibilities for stock outperformance despite the recent dip. He looks to "reengage as fundamentals stabilize."
The analyst downgraded Terex Corporation (NYSE:TEX) to Neutral from Outperform and issued a price target of $44, implying an upside of 34.7%.
Dobre downgraded Oshkosh Corp (NYSE:OSK) to Neutral from Outperform and issued a price target of $92, implying a downside of 1.4%.
The analyst downgraded Manitowoc Company Inc (NYSE:MTW) to Neutral from Outperform and issued a price target of $16, implying an upside of 22.9%.
Astec Industries, Inc. (NASDAQ: ASTE) was downgraded to Neutral from Outperform and issued a price target of $40, implying an upside of 2.9%.
The analyst downgraded REV Group (NYSE:REVG) to Neutral from Outperform and issued a price target of $14, implying an upside of 16.3%.
Price Action: TES shares are trading lower by 2.03% at $32.76, OSK lower by 2.43% at $93.18, MTW lower by 4.96% at $13.04, ASTE lower by 3.77% at $38.82, and REVG by 3.91% at $13.04 on the last check Friday.
