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On Wednesday, JPMorgan analyst Ann Duignan increased the price target on Trimble Navigation (NASDAQ:TRMB) shares to $88 from the previous $84, while reiterating an Overweight rating on the stock. The adjustment follows a recent event where the company’s leadership engaged with investors and analysts, reinforcing confidence in Trimble’s growth prospects. The stock, currently trading at $71.25 with a market cap of $17 billion, has shown strong momentum with a 7.47% return over the past week. According to InvestingPro, 9 analysts have recently revised their earnings expectations upward for the upcoming period.
During the fireside chat at J.P. Morgan’s Technology, Media and Communications Conference in Boston, MA, Trimble’s President and CEO Rob Painter, along with SVP of AECO Mark Schwartz, presented a compelling case for the company’s growth trajectory. The discussions emphasized Trimble’s potential to surpass market growth regardless of economic conditions, citing the company’s comprehensive solutions and digital transformation initiatives as key drivers. InvestingPro data reveals the company maintains a strong financial health score of 2.73 (GOOD), with particularly high marks in profitability and price momentum metrics.
Trimble’s management highlighted their target of achieving approximately 30% enterprise adjusted EBITDA margins by 2027, a step up from the 27.8-28.8% margin guidance set for 2025. They noted that the margin targets could have been set higher if the company prioritized short-term gains over growth, illustrating a strategic balance between long-term value (LTV) and customer acquisition costs (CAC).
The company’s path forward is expected to be marked by clarity, thanks to a streamlined portfolio, durability from a steady increase in software and recurring revenues, and momentum across its three business segments. The raised price target reflects recent market movements and is based on approximately 21 times the fiscal year one enterprise value to EBITDA ratio, using a blend of vertical software and hardware peers. This valuation corresponds to an approximate 4% free cash flow yield for the first fiscal year.
In other recent news, Trimble Inc. reported better-than-expected first-quarter results, with adjusted earnings per share of $0.61, surpassing the analyst estimate of $0.58. The company’s revenue for the quarter reached $840.6 million, exceeding the consensus estimate of $811.4 million, despite a 12% year-over-year decline. Trimble’s annualized recurring revenue hit a record $2.18 billion, reflecting a 7% year-over-year increase and a 15% organic growth, underscoring the resilience of its business model. The company maintained its full-year 2025 guidance, projecting revenue between $3.37 billion and $3.47 billion and adjusted EPS of $2.76 to $2.98.
Bernstein SocGen Group reaffirmed its Outperform rating on Trimble, setting a price target of $80, highlighting the company’s ability to navigate uncertain times. Trimble’s Architecture, Engineering, Construction, and Operations segment reported a 19% year-over-year growth in organic annual recurring revenue. The company has been focusing on expanding its technology outlets and strengthening partnerships with firms like Caterpillar (NYSE:CAT), Liebherr, and Deere (NYSE:DE). Trimble is also managing tariff impacts by implementing a 4% surcharge to offset costs, with limited exposure due to its production locations primarily in the United States and Mexico.
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