DA Davidson lifts CNH Global stock target to $14, keeps neutral rating

On Wednesday, DA Davidson increased its price target for CNH Global (NYSE:CNH) shares to $14 from the previous $12 while maintaining a Neutral stance on the stock. The adjustment comes following CNH Global’s fourth-quarter earnings for 2024. According to InvestingPro data, CNH currently trades at a P/E ratio of 12.6x with a market capitalization of $15.6 billion.

CNH Global’s management has recognized the ongoing difficulties within the agriculture sector and noted that high inventory levels may continue until at least the middle of the year. The company’s revenue declined by nearly 20% in the last twelve months to $19.8 billion, reflecting these sector-wide challenges. Despite these challenges, the company anticipates potential improvements ahead, hinting at a more favorable outlook for 2026, barring any disruptions from policies and tariffs.

The research firm acknowledged CNH Global’s progress in enhancing its cost structure, a move that aligns with its commitments, although it pointed out that the company still has some distance to cover to reach the leading position within the industry. DA Davidson’s analysts mentioned that while they are observing from the sidelines, they recognize the promising situation developing for CNH Global.

The firm’s commentary reflects a cautious optimism about CNH Global’s future, tempered by the current state of the agriculture market and the company’s position within the industry. The new price target represents a modest increase, suggesting that while improvements are noted, there is still a degree of reservation about the company’s near-term growth prospects.

In other recent news, CNH Industrial (BIT:CNHI) reported fourth quarter results that did not meet analyst expectations, with both earnings per share and revenue falling short. The company posted adjusted earnings per share of $0.15 for Q4, missing the consensus estimate of $0.19. Revenue was reported at $4.88 billion, below analyst projections of $5.07 billion. For the full year 2024, CNH Industrial reported consolidated revenues of $19.84 billion, a 20% decrease compared to 2023. The company also provided a cautious outlook for 2025, forecasting adjusted EPS between $0.65 and $0.75, which is below the current analyst consensus of $0.84 per share. These recent developments have prompted analysts to reevaluate their projections for the company. Despite these challenges, CEO Gerrit Marx expressed confidence in the company’s ongoing efforts to streamline operations.

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