Citi raises CNH Global stock target to $14, keeps buy rating

On Monday, Citi analysts, led by Kyle Menges, increased their price target on shares of CNH Global (NYSE:CNH) to $14.00, up from the previous $12.00, while reiterating a Buy rating on the stock. Currently trading at $12.40, with a market capitalization of $15.48 billion, CNH has shown strong momentum with a 9.44% gain year-to-date. The revised target comes after CNH Global reported first-quarter results that surpassed Citi’s forecasts. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

Menges noted that the adjustment in the price target reflects changes to their financial model for CNH Global, which now includes the impact of tariffs and the company’s stronger-than-expected performance in the first quarter. The new model predicts an adjusted earnings per share (EPS) of $0.63 for 2025, slightly down from the earlier estimate of $0.65. This forecast remains above the midpoint of CNH Global’s updated guidance range of $0.50 to $0.70. InvestingPro data reveals the company trades at a relatively high EBITDA multiple of 21.7x, with analysts projecting a 14% revenue decline for the current year.

The analyst believes that the lower end of CNH Global’s guidance could be overly pessimistic, given that it factors in the tariff rates announced on April 2, which is known as Liberation Day. Menges suggests that had it not been for the tariff impacts, CNH Global would have maintained its prior guidance.

Citi’s confidence in the revised price target is also based on the belief that 2025 will mark the trough of the earnings cycle for CNH Global. Menges expresses further optimism due to CNH Global’s well-balanced geographic exposure, which could position the company to benefit from a potential recovery in the European and South American agriculture sectors, despite a relatively subdued outlook for North America.

The analyst’s commentary underscores a positive outlook for CNH Global, with an anticipation of resilience in the face of current tariff challenges and potential for growth in key markets. The maintained Buy rating indicates Citi’s continued confidence in the investment potential of CNH Global stock.

In other recent news, CNH Global has seen a significant upgrade from Northland analysts, who have improved the stock rating from Market Perform to Outperform while maintaining a price target of $18. This change reflects a positive outlook on CNH’s recovery since the pre-Covid era, with shares having increased by 115.7% over the past two years. In a notable executive shift, CNH Industrial (BIT:CNHI) announced the appointment of James Nickolas as the new Chief Financial Officer, succeeding Oddone Incisa. This transition is set to be completed by May 6, 2025, with Nickolas bringing extensive experience in corporate finance and mergers.

Additionally, CNH Industrial has extended its €3.25 billion credit facility to 2030, a strategic move to ensure financial stability and operational flexibility. The company also announced the pricing of $500 million in notes at 4.750%, with the offering expected to close on March 21, 2025. This will support general corporate purposes, including working capital and debt repayment. Meanwhile, DA Davidson downgraded Caterpillar (NYSE:CAT)’s stock rating from Buy to Neutral, citing concerns from construction equipment dealers about retail sales and market uncertainties.

Despite these challenges in the broader machinery sector, CNH Industrial remains unaffected, maintaining a Neutral rating from DA Davidson. These developments underscore CNH’s strategic maneuvers to bolster its financial health and market position.

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