Analysts have modestly reduced CNH Industrial’s price target to $14.82 amid rising steel and aluminum tariffs pressuring margins, ongoing sector inventory destocking, and more cautious near-term earnings expectations despite some longer-term optimism.
Analyst Commentary
- Increased and broadened steel and aluminum tariffs (Section 232) are raising input costs for CNH Industrial, directly pressuring near-term margin expectations.
- Extended scope of U.S. tariffs to over 400 classes of metal parts and components is expected to create significant cost headwinds across all heavy machinery OEMs, including CNH Industrial.
- Bearish analysts cite ongoing sector inventory destocking and a longer path to end market recovery, dampening sales and earnings momentum for CNH Industrial.
- Investor optimism over a 2026/2027 upcycle is offset by analyst expectations for more muted price increases and a “fair” valuation for the stock after recent outperformance.
- Bullish analysts in the sector see longer-term upside due to sector multiple expansion, but immediate earnings adjustments reflect cautious near-term outlook post Q2 results.
What's in the News
- CNH Industrial completed its February 2024 buyback program, repurchasing 14,690,610 shares (1.16% of shares) for $161.25 million; no shares were repurchased in the most recent tranche.
- The company reaffirmed its 2025 full-year guidance for net sales, EBIT margin, and EPS, maintaining the EPS range at $0.50 to $0.70.
- Oddone Incisa, former group CFO of CNH Industrial through May 2025, has been appointed CFO of Barilla Group.
Valuation Changes
Summary of Valuation Changes for CNH Industrial
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $15.03 to $14.82.
- The Consensus Revenue Growth forecasts for CNH Industrial has significantly risen from 1.2% per annum to 1.4% per annum.
- The Net Profit Margin for CNH Industrial remained effectively unchanged, moving only marginally from 8.32% to 8.23%.
Disclaimer
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