Update shared on09 Sep 2025
Fair value Decreased 0.35%CNH Industrial’s consensus price target was trimmed slightly to $15.03 as analysts accounted for the increased cost impact of expanded Section 232 tariffs on metal components and a weaker near-term earnings outlook, reflecting ongoing industry headwinds.
Analyst Commentary
- Price targets reduced to reflect the impact of updated Section 232 tariffs, including a 50% tariff on steel and aluminum content of imported products, which increases input costs for agricultural machinery manufacturers.
- Tariff scope expansion to over 400 metal parts/components is expected to generate significant headwinds for heavy equipment makers, mirroring the negative impact already quantified by Caterpillar and affecting CNH Industrial.
- Analysts now expect a longer inventory destocking cycle and more muted price increases, diminishing the prospects of a near-term earnings rebound for CNH Industrial.
- Moderating earnings estimates and prolonged industry downturns have led to lower valuation multiples and price target reductions, with sentiment shifting from Buy/Outperform to Neutral/In Line.
- A sector-wide expectation of continued headwinds through 2025 is offset by some bullish analysts citing potential for multiple expansion on upward bias to future earnings estimates, particularly as end markets stabilize post-2026.
What's in the News
- CNH Industrial completed the repurchase of 14,690,610 shares, representing 1.16% for $161.25 million under its buyback program; no shares were repurchased from April 1 to June 30, 2025.
- The company reaffirmed its full-year 2025 earnings, net sales, EBIT margin, and EPS guidance, maintaining the EPS range at $0.50 to $0.70.
- Oddone Incisa, previously group CFO of CNH Industrial, was appointed CFO of Barilla Group, effective September 15, 2025.
Valuation Changes
Summary of Valuation Changes for CNH Industrial
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $15.08 to $15.03.
- The Future P/E for CNH Industrial remained effectively unchanged, moving only marginally from 17.93x to 17.62x.
- The Net Profit Margin for CNH Industrial remained effectively unchanged, moving only marginally from 8.21% to 8.32%.
Disclaimer
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