Astec could be ‘good potential fit’ with Deere or Terex, says Baird

Baird analyst Mircea Dobre said the "unexpected" CEO transition announced last week by Astec Industries (ASTE) signals ongoing operational and execution challenges, but also comes in an environment with outsized U.S. infrastructure funding visibility. Given that Astec has no debt, known brands, and a strong market position in asphalt plants, the company "could become a target," said Dobre, who sees a good potential fit with Deere (DE), which he argues "could easily digest the transaction, and "maybe even" with Terex (TEX). Dobre has a Neutral rating on Astec shares.