Terex stock price target raised to $67 from $55 by Jefferies By Investing.com

On Monday, an analyst from Jefferies updated the price target for Terex Corporation (NYSE:), a global manufacturer of lifting and material processing products and services. The price target has been increased to $67.00, up from the previous target of $55.00. Despite this adjustment, the firm has decided to maintain a Hold rating on the stock.

The revision comes after positive indicators were observed within Terex’s core business. Customer feedback, particularly from the recent DASH user conference, was favorable, and consumption trends across the company’s ecosystem have been robust. These factors contribute to the analyst’s expectation that Terex is likely to experience a 3-4% upside in the second quarter, aligning with recent trends.

Moreover, the analyst pointed out that Terex’s management has a balanced view regarding the revenue guidance for the calendar year 2024. While a deceleration in revenue growth is anticipated throughout the year, the second half is expected to be comparatively stronger with year-over-year comparisons becoming easier to surpass.

In summary, the combination of a normalized optimization cycle, the development of new workloads, the momentum of AI, and an expanding security portfolio are seen as key drivers for Terex to maintain at least mid-20% annual revenue growth in the upcoming years. This outlook underpins the revised price target, reflecting the firm’s confidence in Terex’s performance prospects.

In other recent news, Terex Corporation has reported a 5% increase in sales to $1.3 billion in the first quarter, with earnings per share reaching $1.60. Alongside this robust performance, the company has also announced an expansion in operating margins by 20 basis points and an improvement in gross margins by 40 basis points. This has led Terex to raise its full-year sales and earnings outlook. The company has also reaffirmed its 2024 free cash flow outlook range of $325 million to $375 million.

Citi initiated coverage on Terex with a Neutral rating, citing a conservative outlook for the company’s earnings per share growth. The firm’s projections are slightly less optimistic than Terex’s own targets, anticipating about 150 basis points of margin expansion from the company’s new Aerial Work Platforms facility in Monterrey, Mexico, compared to Terex’s goal of 200 basis points.

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