CNH Industrial stock price target lowered to $13 at CFRA on margin pressure

Investing.com - CFRA lowered its price target on CNH Industrial (NYSE:CNH) to $13.00 from $14.00 on Wednesday, while maintaining a Hold rating on the stock. According to InvestingPro data, the stock currently trades at $12.40, with analyst targets ranging from $11.50 to $21.00, suggesting mixed views on its valuation.

The firm cited margin pressure as a key factor in its decision, noting that CNH’s adjusted EBIT margin contracted by 490 basis points to 5.6% in the second quarter of 2025, driven by lower volumes and operational inefficiencies.

CNH Industrial reported a 46% year-over-year decline in net income to $217 million for Q2 2025, with diluted earnings per share falling to $0.17 from $0.32 in the same period of 2024.

Despite these earnings challenges, CFRA viewed the company’s improved free cash flow positively, with free cash flow from Industrial Activities increasing to $451 million, up $311 million year-over-year, driven by favorable working capital developments.

The research firm acknowledged CNH’s efforts in cost control and production alignment but expressed concern about limited visibility, with risks related to global trade policy, geopolitical instability, and potential volatility in customer demand clouding the near-term outlook.

In other recent news, CNH Industrial has made significant strides in enhancing its agricultural operations through a new partnership with SpaceX’s Starlink. This collaboration aims to improve satellite connectivity for CNH’s brands, including Case IH, New Holland, and STEYR, by providing high-speed internet access in remote areas. The integration with Starlink’s technology is expected to enhance the use of CNH’s precision farming tools, ensuring better connectivity for farm management devices and improving data streaming capabilities. Additionally, Truist Securities reiterated its buy rating on CNH, maintaining a $16.00 price target. The firm highlighted CNH’s strong market position in Latin America, where it benefits from a local manufacturing footprint and high margins. In contrast, Goldman Sachs downgraded CNH from Buy to Neutral, citing valuation concerns and suggesting that expectations for recovery are already reflected in the current share price. These analyst actions reflect differing opinions on CNH’s financial outlook amid ongoing macroeconomic uncertainty.

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