Bank of America has reduced its price target for Terex (TEX, Financial) from $46 to $37.50, maintaining an Underperform rating on the shares. The decision reflects a challenging outlook for the Machinery, Engineering & Construction (E&C), and Waste sectors as companies approach their earnings reports.
According to the firm, the upcoming earnings period presents a "lose-lose" scenario. Companies might either lower their guidance in response to prevailing uncertainties or risk seeming disconnected from the current market conditions. This assessment has prompted Bank of America to adjust price targets across the sector.
Furthermore, the firm is shifting its focus towards services-related segments, like aggregates, rentals, and waste management, deeming them more favorable compared to original equipment manufacturers. This strategic pivot suggests a preference for stable service revenue over the unpredictability of equipment sales in the current economic climate.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Terex Corp (TEX, Financial) is $43.30 with a high estimate of $59.00 and a low estimate of $30.00. The average target implies an upside of 29.91% from the current price of $33.33. More detailed estimate data can be found on the Terex Corp (TEX) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Terex Corp's (TEX, Financial) average brokerage recommendation is currently 3.1, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Terex Corp (TEX, Financial) in one year is $57.46, suggesting a upside of 72.4% from the current price of $33.33. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Terex Corp (TEX) Summary page.
