This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jefferies Downgrades Several Machinery Companies

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
Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,630.27 +189.68 1.09%
S&P 500 2,093.25 +25.61 1.24%
NASDAQ 5,089.2060 +49.43 0.98%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs