NEW YORK (Reuters) - Hedge fund manager Mick McGuire on Tuesday said that crane maker Terex Corp’s share price could more than triple as the company focuses on its core business and pursues a disciplined capital allocation plan.
McGuire’s Marcato Capital Management announced in July 2016 that it had bought a stake in Terex. One of McGuire’s partners was added to the company’s board earlier this year. Terex is Marcato’s largest investment, with a current stake of roughly 6 percent, McGuire said.
McGuire praised Terex’s chief executive officer, John Garrison, who was relatively new when the hedge fund first invested. “This is the kind of CEO that you want to encounter as an activist,” McGuire said at the CNBC Institutional Investor Delivering Alpha Conference.
Terex’s share price closed up 4.19 percent at $41.73 on Tuesday, ahead of McGuire’s presentation. McGuire said the company’s share price has doubled since his fund invested.
“We are most excited about the sourcing savings that Terex is pursuing,” McGuire said.
He also voiced enthusiasm about the company’s ongoing plan to repurchase shares. Terex has already repurchased $700 million worth of shares and has authorized the repurchase of up to another $225 million.
“I like this one a lot,” McGuire said.
Reporting by Svea Herbst-Bayliss and Lawrence Delevingne; Editing by Leslie Adler