Wall Street Backs Terex Corp After Selloff: Barclays Sets $65 Price Target
Terex Corp (NYSE:TEX | TEX Price Prediction) received a reinstatement of coverage from Barclays on Tuesday, with the firm assigning an Overweight rating and a $65 price target. The call arrives as Terex shares trade at $54.87, having pulled back…
Terex Corp (NYSE:TEX | TEX Price Prediction) received a reinstatement of coverage from Barclays on Tuesday, with the firm assigning an Overweight rating and a $65 price target. The call arrives as Terex shares trade at $54.87, having pulled back 20.02% over the past month after peaking near the stock’s 52-week high of $71.50. For investors watching industrials, the reinstatement signals that at least one major firm views the recent selloff as a buying signal worth acting on.
| Ticker | Firm | Action | New Rating | New Price Target | One-Line Takeaway |
|---|---|---|---|---|---|
| TEX | Barclays | Reinstatement | Overweight | $65 | Portfolio transformation and stabilizing end markets support improving risk/reward. |
The Analyst’s Case
Barclays’ core thesis centers on a structural shift in Terex’s business mix. The firm argues that the company’s portfolio is less cyclical and better balanced across non-construction end markets, and that Terex has fundamentally transformed its portfolio in a way that improves its through-cycle durability. Barclays also notes that the stock offers an improving risk/reward as its end markets stabilize.
That transformation thesis has real operational backing. The completed REV Group merger added a fourth segment, Specialty Vehicles, contributing an estimated $2.2 billion revenue baseline from fire trucks, ambulances, and recreational vehicles. Management expects ~$28 million in realized REV synergies in 2026, targeting a $75 million annual run-rate within two years.
Company Snapshot and Recent Performance
Terex posted Q4 2025 revenue of $1.318 billion, beating estimates, though adjusted EPS of $1.12 narrowly missed the $1.13 consensus. The more compelling data point was demand: Q4 bookings hit $1.90 billion, up 32% year-over-year on a pro forma basis, with a book-to-bill ratio of 145%. Full-year free cash flow reached $325 million at 147% cash conversion.
For 2026, management guided for net sales of $7.5 billion to $8.1 billion and adjusted EPS of $4.50 to $5.00. CEO Simon Meester stated, “We head into 2026 with considerable momentum from strong Q4 bookings and backlog levels.”
Why the Move Matters Now
With TEX trading at $54.87, Barclays’ $65 target implies meaningful upside from current levels. The broader analyst community remains constructive: the consensus average price target across 12 brokerages sits at $72.90, well above where the stock trades today. Citigroup upgraded Terex to Buy in March 2026 with a $75 target, and JPMorgan initiated coverage at Neutral with a $76 target. The primary risks to the thesis include Section 232 tariff headwinds compressing Aerials margins to 2.6% in Q4, REV integration execution risk, and long-term debt of approximately $2.58 billion.
What Investors Are Watching
Barclays’ reinstatement at Overweight reflects conviction that Terex’s diversification into Environmental Solutions and Specialty Vehicles reduces the cyclical exposure that historically weighed on the stock. The forward P/E of 13x looks reasonable relative to the growth profile embedded in 2026 guidance, though the tariff backdrop and integration timeline warrant careful monitoring before drawing firm conclusions on timing.
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Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.
He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.
