Optimistic Buy Rating for Terex: Path to EPS Bottoming and Stock Valuation Normalization by 2025

Robert W. Baird analyst Mircea Dobre upgraded the rating on Terex (TEX – Research Report) to a Buy today, setting a price target of $66.00.

Mircea Dobre has given his Buy rating due to a combination of factors that suggest potential for Terex’s stock to appreciate. The company has experienced a cyclical downturn, with earnings having reset following a peak in post-COVID demand. However, Dobre sees a path to earnings per share (EPS) bottoming in 2025, which could lead to a normalization of the stock’s valuation multiples, potentially driving the stock price into the $60-$75 range.
Additionally, the aerials segment, which has been in a sharp downcycle, is expected to see order improvements in 2025, and the Environmental Solutions segment provides some stability amidst the cyclical pressures. The company’s exposure to tariffs has also become more manageable, with a significant portion of products sold in the US being manufactured domestically. These factors, combined with the potential for stabilization and growth in various segments, underpin Dobre’s optimistic outlook and Buy rating for Terex.

Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is neutral on the stock.