On Jul 9, 2014, Zacks Investment Research upgraded Manitex International, Inc. (MNTX), a leading provider of engineered lifting solutions, to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell).
Why the Upgrade?
Even though Manitex reported a 12.5% year-over-year decline in its first-quarter 2014 earnings, the company remains optimistic and expects significantly improved results for the second quarter and the rest of 2014.
Manitex is planning to increase its production for the second and third quarters of this year, which is expected to result in revenues in excess of $70 million in the second quarter. With the planned increase in production, the company anticipates a gross margin of nearly 20% for the full year.
Manitex will also benefit from an additional military order at its Liftking subsidiary. Toward the end of the quarter, the company was awarded a five-year contract from the U.S. Navy valued at $25.9 million, for supply of specialized material handling units, with shipments anticipated to commence in 2015.
Additionally, Manitex's acquisition of Valla, SpA in Nov 2013 will diversify its crane portfolio and increase its global product offering. The Sabre acquisition is also expected to be a strategic fit for the company as it will enable further diversification of its product line and end markets, and result in an above-average upside.
Manitex remains committed to increasing its innovative product offering, as evident from the introduction of the Manitex TC 70 crane, which will likely drive sales. Backlog at the company is on the rise, further supported a by a steady economic recovery.
Other Stocks to Consider
Other stocks in the same sector that warrant a look include Blount International Inc. (BLT), EnPro Industries, Inc. (NPO) and Altra Industrial Motion Corp. (AIMC). While Blount International and EnPro Industries carry a Zacks Rank #1 (Strong Buy). Altra Industrial Motion has a Zacks Rank #2 (Buy).
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