Columbus-McKinnon slips after Baird downgrades to 'Neutral'

Shares of Columbus McKinnon Corp. fell on Tuesday after an analyst downgraded the crane and hoist manufacturer, citing concerns over the slowing domestic economy and higher raw materials prices.

Robert W. Baird analyst Peter Lisnic said in a note to investors Tuesday morning that several materials handling companies are reporting unease over the broader economy, higher steel prices and weakness in some of their product lines.

Lisnic predicted the broader sector will likely see steady demand for the remainder of the year, with continued strength from bigger expenditures such as power plants, but he cautioned that demand would be slower compared with 2007.

Furthermore, although the weaker U.S. dollar is likely benefiting Amherst, N.Y.-based Columbus-McKinnon as it attempts to expand overseas, inflation may limit upward earnings revisions on the stock.

Lisnic downgraded Columbus-McKinnon to "Neutral" from "Outperform." However, he maintained his $32 target price and his profit outlook of $2.20 per share for fiscal 2008.

Shares of Columbus-McKinnon lost $2.77, or 8.7 percent, to close at $29 Tuesday. The stock, which has gained more than 44 percent since January, has ranged from $22 to $34.30 over the past year.