Citi raises CNH Global stock price target to $15 from $13

On Wednesday, Citi analyst Kyle Menges adjusted the financial outlook for CNH Global (NYSE:CNH), increasing the price target to $15.00, up from the previous $13.00, while reiterating a Buy rating on the stock. The revision follows CNH Global’s fourth-quarter earnings report and takes into account the company’s performance and future projections. With a current market capitalization of $15.6 billion and trading at $12.48, InvestingPro analysis suggests the stock is currently overvalued based on its Fair Value calculations.

Menges updated his model for CNH, reducing the anticipated adjusted earnings per share (EPS) for 2025 to $0.72 from $0.87. The estimates for 2026 and 2027 were also lowered by $0.18 and $0.30, respectively. These adjustments are mainly due to lowered expectations for agriculture and construction equipment volumes. The company currently trades at a P/E ratio of 12.58, with InvestingPro data showing that two analysts have recently revised their earnings estimates downward for the upcoming period.

Despite CNH’s revenue guidance falling short of expectations, Menges noted positive developments, including the company’s effective inventory management in the fourth quarter, where it reduced dealer inventories by over $700 million. This trend of destocking is expected to continue into the first half of 2025, with the company planning to align production with retail demand in the second half of the year. The company maintains a solid dividend yield of 3.69%, demonstrating its commitment to shareholder returns despite market challenges.

Menges also highlighted that CNH’s segment margin guidance surpassed many investors’ expectations, aided by cost-reduction efforts. Furthermore, the company’s forecast for flat to slightly positive pricing in 2025 provides additional encouragement.

The increased price target to $15 reflects a higher multiple and Menges’ confidence that 2025 will represent the trough earnings for CNH Global, signaling an expectation of recovery thereafter.

In other recent news, CNH Global experienced a setback with its fourth-quarter results for 2024, which fell short of analyst expectations. The agricultural and construction equipment maker reported adjusted earnings per share of $0.15 and revenue of $4.88 billion, both lower than projected. This was accompanied by a disappointing outlook for 2025, with the company foreseeing adjusted EPS between $0.65 and $0.75, falling well below the current analyst consensus of $0.84 per share.

In response to these developments, DA Davidson adjusted its price target for CNH Global shares to $14, up from $12, while maintaining a neutral stance. The research firm acknowledged CNH Global’s progress in enhancing its cost structure, despite recognizing the ongoing difficulties within the agriculture sector and the company’s position within the industry.

CNH Global’s management has also expressed potential improvements ahead, hinting at a more favorable outlook for 2026, barring any disruptions from policies and tariffs. The company’s efforts to streamline operations, despite the challenging market conditions, were noted as a positive step towards positioning the company well for future regional market cycles. These are some of the recent developments concerning CNH Global.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.