Manitowoc (NYSE: MTW) is a diversified manufacturer of cranes, food service equipment, and marine vessels.
Analysts really like MTW's crane business, which in 2006 accounted for 76% of earnings and 81% of revenue. Analysts continue to see robust demand for MTW's cranes from Asia and Europe, particularly from emerging market countries in this regions.
Analysts also like MTW's food service business and marine division; the former is likely to see continued strong demand for refrigeration machines and equipment; the latter, adequate demand for commercial seafaring vessels. The Reuters F2008/F2009 EPS consensus estimates for MTW are $3.41/$3.90.
The risks? A global economic slowdown would (obviously) hurt MTW's results. Analysts also are keeping an eye on MTW's core component costs.
The First Call mean rating for MTW is: Hold [7 firms]. Mean 2008 target: $51 [high: $57, low: $42].
Stock Analysis: Manitowoc is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded by MTW shares. Sell/Stop Loss if you were to purchase shares in this company: $18.
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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