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Will Morgan Stanley’s Upgrade and MAGNA’s European Push Change Terex's (TEX) Narrative?

Simply Wall St · 2d ago
  • Earlier this month, Morgan Stanley upgraded Terex to "Overweight," citing a stronger business portfolio, improving operations following recent M&A, and the European launch of its MAGNA brand.
  • The upgrade suggests large institutional investors see Terex’s portfolio reshaping and European expansion as potentially meaningful drivers of future business quality.
  • We’ll now examine how Morgan Stanley’s renewed confidence, particularly around MAGNA’s European expansion, affects Terex’s existing investment narrative.

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Terex Investment Narrative Recap

To own Terex, you need to believe its mix of construction, utility and materials processing equipment can translate policy driven infrastructure spending and product upgrades into sustainable earnings, despite recent margin pressure. Morgan Stanley’s upgrade and MAGNA’s European rollout may bolster confidence in the near term, but they do not remove the key short term risk that higher interest rates and cautious customers could still slow equipment demand and weigh on orders.

Among recent corporate updates, Terex’s October earnings and guidance are most relevant here: management reaffirmed 2025 sales of about US$5,300 million to US$5,500 million and EPS of US$4.70 to US$5.10, while flagging roughly US$0.70 per share of tariff related drag. That context matters when thinking about how much portfolio improvements and MAGNA’s expansion can offset ongoing tariff inflation and margin pressure.

Yet while analyst confidence has improved, investors should not ignore the risk that persistent high interest rates could still...

Read the full narrative on Terex (it's free!)

Terex's narrative projects $6.1 billion revenue and $525.7 million earnings by 2028. This requires 6.0% yearly revenue growth and a $346.7 million earnings increase from $179.0 million today.

Uncover how Terex's forecasts yield a $58.73 fair value, a 14% upside to its current price.

Exploring Other Perspectives

TEX 1-Year Stock Price Chart
TEX 1-Year Stock Price Chart

Four members of the Simply Wall St Community value Terex between US$51.89 and US$94.50, underscoring how far opinions can diverge. You can weigh those views against the risk that extended high interest rates and hesitant equipment buyers could pressure orders and earnings, and then explore which scenarios you find more convincing.

Explore 4 other fair value estimates on Terex - why the stock might be worth as much as 83% more than the current price!

Build Your Own Terex Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.