The Associated Press
U.S. machinery companies may be facing a tough road ahead because of slowing business overseas and moderating demand the U.S., according to a Jefferies analyst.
Analyst Stephen Volkmann cut his ratings and price targets on a number of machinery companies Wednesday; including Caterpillar Inc., CNH Global NV, Eaton Corp., Kennametal Inc., Parker Hannifin Corp. and Titan International Inc.
He wrote in a note to investors that the industry faces softer demand in Europe and some developing markets. And the sluggish U.S. economy and a hot, dry summer in the country's crop belt could hinder demand for companies that do business there. Cutbacks in North American mining and gas drilling have also reduced demand, Volkmann said.The analyst did see one exception, upgrading Oshkosh Corp. to "Buy" from "Hold" as it has little business overseas. "This is largely a macro call, with little company specific data so far," Volcker wrote. However, he still believes in the long-term strength of the sector and expects business will revive in the future because of pent-up demand. Shares of companies in the sector were mixed in afternoon trading. --Caterpillar: Up 67 cents to $82.06 --CNH Global: Down 82 cents to $35.78 --Eaton: Up 73 cents to $39.10 --Kennametal: Up 35 cents to $33.99 --Parker Hannifin: Up $2.67, or 3.6 percent, to $76.55 --Titan International: Down $1.28, or 5.7 percent, to $21.08 --Oshkosh: Up $1.09, or 5.4 percent, to $21.31
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV