This Day On The Street
Continue to site
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 This material may not be published, broadcast, rewritten or redistributed.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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs