Q4 EPS of $0.74 before one-time items vs. $0.35 meets our estimate, aided mostly by very strong gains in crane segment, with notable demand strength in emerging markets. Most importantly, in our view, MTW sees demand for its cranes staying strong through at least end of the decade, and has upped its capex budget for '08.We still see EPS of $3.40 in '08 and are setting '09 at $4.05, since we see demand boosted by ongoing strong activity in infrastructure and energy markets. But in light of lower market valuations, we cut our target price by $7 to $61, 18X the '08 estimate.
Excellent post kentstate...Their 12 month target on 11/5/07 was $64. Then on 12/12/07 they raised it to $68...and as you posted, in their latest bit of wisdom, they lowered to $61. I don't understand their logic in light of the strong conference call just ended. Did they even listen?
Looks like they are trying to justify the cost of their research by constantly revising price targets.