Analyst Note| Dawit Woldemariam |
After taking a fresh look at our thesis for Terex, we’ve increased our fair value estimate to $40.50 from $31 to reflect stronger end-market performance than we previously forecast. We also upgraded our moat rating to narrow after concluding that the company’s two core segments benefit from intangible assets. Each of Terex’s segments possess strong brands that customers value. The company provides customers with reliable, high-quality products while offering a lower total cost of ownership thanks to strong residual values. In aerial products, Terex’s Genie brand is a top two player in developed markets, providing customers with booms, lifts, and telehandlers. Terex is also a market leader in materials processing, particularly in crushing and screening, a key downstream process for infrastructure projects.