Truist reiterates buy rating on CNH stock amid Latin America strength

Published 16/06/2025, 15:12
Truist reiterates buy rating on CNH stock amid Latin America strength

Truist Securities maintained its buy rating and $16.00 price target on CNH Global (NYSE:CNH) Monday, citing the company’s strong market position in Latin America and potential for margin improvement. Currently trading at $12.93, CNH shows potential upside to analyst targets ranging from $12 to $21. According to InvestingPro data, the stock has delivered a robust 23% return over the past year, with 11 analysts recently revising their earnings expectations downward.

CNH Global holds market leadership in Brazil through its Case IH and New Holland brands, benefiting from a local manufacturing footprint that produces more than 90% of its Latin America net sales within the region. Latin America consistently ranks as one of CNH’s highest-margin and market-share regions compared to its total portfolio. InvestingPro analysis confirms CNH’s strong market position, with a gross profit margin of 20.3% and healthy liquidity metrics, including a current ratio of 5.08.

The agricultural equipment manufacturer has already improved its Latin America margins through the current business cycle by implementing self-help measures and achieving greater manufacturing efficiencies, though Truist notes the company sees additional improvement opportunities ahead.

CNH Global identifies market share growth potential in high-horsepower equipment, planters, and sprayers, and is investing in a new parts facility in Brazil’s Mato Grosso region. These initiatives, combined with further self-help measures, are expected to improve the company’s through-cycle margins.

While CNH is navigating the current market downturn effectively, Truist believes the company is well-positioned to serve customers when demand improves in the agricultural equipment sector. For deeper insights into CNH’s financial health and market position, including exclusive ProTips and comprehensive valuation metrics, explore the detailed Pro Research Report available on InvestingPro.

In other recent news, CNH Industrial (BIT:CNHI) has announced a significant partnership with SpaceX’s Starlink to enhance satellite connectivity for its agricultural brands, including Case IH, New Holland, and STEYR. This collaboration aims to provide high-speed internet access in remote areas, benefiting modern precision farming techniques. In another development, Citi analysts have raised their price target for CNH Global shares to $14 from $12, maintaining a Buy rating following better-than-expected first-quarter results. The revised target reflects adjustments in their financial model, considering tariff impacts and the company’s performance. Additionally, Northland analysts upgraded CNH Global’s stock rating from Market Perform to Outperform, with a maintained price target of $18, highlighting the company’s robust recovery since the pre-Covid low. In executive news, CNH Industrial announced the departure of Chief Financial Officer Oddone Incisa, with James Nickolas set to succeed him. Nickolas, who brings extensive experience from his previous roles, will officially take over on May 6, 2025. These developments reflect CNH Industrial’s ongoing efforts to strengthen its market position and operational capabilities.

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

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