Two downgrades this morning on Manitowoc (MTW).
Manitowoc Cut To Hold From Buy By Sterne Agee
Manitowoc Cut To Neutral From Buy By Bank Of America
From what I could find, they were based on analyst predictions of slower growth. No mention of the Enodis buyout, but I would have to assume that it also plays a role in their decision making when issuing their downgrades.
Stock is down sharply to $36.50 range for almost 8%. Ouch.
*** Edit #1 ***
Here's more on the B of A downgrade that I just found from S&P Marketscope:
BANC OF AMERICA DOWNGRADES MTW TO NEUTRAL FROM BUY
Yesterday co. agreed to buy Enodis. Analyst Seth Weber tells salesforce downgrades as he believes sustained appreciation will become tougher going forward, despite his expectations for NT results to remain strong, as: 1) his latest Crane Survey shows some shift in op. trends, sentiment, which could signal future moderation in market; 2) believes pending Enodis deal could weigh on shares given mixed view to an expanded foodservice component. Maintains estimates; looks for '08 EPS at top end of $3.20-$3.40 range. Notes co. expects Enodis to be accretive in '09. Lowers target to $47 from $53 to reflect potential for moderation in crane cycle and acq. integration risk.
2 comments:
So did you sell?
No, I didn't sell. If the stock weakens or stays at current levels, I will likely add a little. I still like the company over the longer-term.
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