Terex Corporation (NYSE: TEX) manufactures equipment for use in the construction, infrastructure, and surface mining industries.
Analysts like TEX's international crane business, which should register strong revenue growth, due to the ongoing infrastructure boom in Asia and the Middle East. Analysts also see solid demand for material processing and mining equipment in the immediate years ahead.
Further, overall orders and revenue should increase at double-digit rates for the next three years. Margins will remain solid, but may decrease slightly for 2008. The Reuters FY 2007/FY 2008 EPS consensus estimates for TEX are $5.67 to $6.74.
The risks? Analysts are keeping an eye on TEX's core component costs. Analysts are also on the lookout for any signs of a sustained global economic slowdown.
The First Call mean rating for TEX is: Buy [15 firms]. Mean 2008 target: $83.00 [high: $100, low: $72].
Stock Analysis: Terex is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from TEX's shares. Sell/Stop Loss if you were to purchase shares in this company: $37.
Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.
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