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The Manitowoc Company, Inc. Message Board

  • rdietsche34 rdietsche34 Mar 24, 2012 10:41 AM Flag

    MTW Rating by Standard & Poors

    Standard and Poors as of March 17, 2012 has rated MTW with 5 stars, which indicates a Stong Buy. Thought everyone should know. I am sure many of you do already. There were will be ups and downs with this issue but the trend will be up.

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    • the latest report dated march 2.

      ä We expect revenues to rise 14% in 2012, following a 16% gain in 2011. We see crane sales improving by 19% in 2012 and foodservice equipment by 8%, after gains of 24% and 7% were
      posted, respectively, in 2011. MTW's crane orders have picked up since very late in 2010,
      with crane backlog rising 33% from a year earlier to $761 million at 2011 year-end. On our outlook for further economic gains, we see crane
      sales rebounding over the next few years. We
      also see a more favorable economy, new products and geographic penetration leading to a
      period of growth in foodservice equipment.
      ä We see wider margins in 2012, on our outlook
      for higher sales and more synergies from the
      late 2008 purchase of foodservice equipment
      maker Enodis. We see these factors outweighing some likely material cost pressures.
      ä Our 2012 EPS forecast of $1.10 compares with
      operating EPS of $0.38 in 2011. In January 2012,
      MTW discovered an error in its purchase accounting for the Enodis acquisition, and revised
      its 2009 and 2010 financial statements (along
      with certain minor prior period adjustments).
      This improved earnings for 2009 by $35.2 million
      and reduced earnings for 2010 by $6.1 million.
      Investment Rationale/Risk
      ä MTW has faced major business challenges in
      recent years, and took on a very heavy debt
      load in its 2008 takeover of Enodis. However,
      we think its business is in the early stages of
      recovery. We also think MTW has been greatly
      aided by its renegotiation and refinancing of
      $4.5 billion of loans and notes since mid-2009; it
      has also paid down about $1.2 billion of debt
      since acquiring Enodis. Based on these factors
      and our valuation model, we find the shares
      significantly undervalued.
      ä Risks to our recommendation and target price
      include insufficient liquidity, and a resumption
      of the downturn in the global economy.
      ä MTW recently traded at about 14X our 2012 EPS
      estimate, which is in the bottom half of its range
      at a similar stage of its last business revival.
      We think a much higher valuation is merited, as
      we believe MTW's crane business is poised to
      start a strong recovery, and its expanded foodservice operations are in a growth mode and
      will reduce its cyclicality to an extent. Our
      12-month target price is $22, or 20X our 2012
      EPS forecast, and the top half of its typical midcycle valuation

    • One thing I do is do a complete research and not depend on one rating system. I don't continually post negative nonsense like James. It is apparent that he is a genius in his own mind.

    • On my worst day I am smarter than you are on your best day.

    • If you could buy some people for what they know and sell them for what they think they know, you wouldn't ever have to work again. Get the drift?

    • You should see a geriatric specialist to try to get to the bottom of your memory loss/dementia.

    • Mental Midget. LOL

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