Analysts have modestly lowered their price target for CNH Industrial, reducing it from approximately $14.66 to $14.11 per share. They cite the impact of newly expanded tariffs and related headwinds facing the heavy machinery sector as key factors.
Analyst Commentary
Recent analyst notes on CNH Industrial reflect a mixture of caution and optimism, drawing attention to external pressures and fundamental sector drivers. The focus remains on the effect of updated tariffs, sector-wide headwinds, and the potential for earnings growth amid these challenges.
Bullish Takeaways- Some analysts still anticipate upward momentum in sector earnings, which could spur multiple expansion and support valuations. This comes despite recent target reductions.
- Bullish analysts highlight an upward bias to earnings estimates following Q2 reports. This suggests that CNH Industrial may exhibit greater resilience than some peers.
- The continued demand cycle expected in 2026 offers a potential tailwind for the company’s long-term growth prospects.
- Recent expansions to steel and aluminum tariffs, now covering over 400 metal components, represent a new and significant cost headwind for CNH Industrial and its peers.
- Bearish analysts point to downward revisions in price targets in response to higher input costs and uncertain macro conditions. These factors could constrain profitability and growth for the near term.
- Updated country-specific tariffs and increased raw material costs raise risks around margin execution and earnings delivery heading into 2025.
- Reductions in sector targets and cautious ratings signal that material improvements in valuation may remain limited until tariff impacts are better understood or absorbed.
What's in the News
- CNH Industrial completed the repurchase of 14,690,610 shares, representing 1.16% of outstanding shares, for $161.25 million under the buyback program announced on February 14, 2024 (Key Developments).
- From April 1, 2025 to June 30, 2025, the company reported no new share repurchases under its buyback program (Key Developments).
- CNH Industrial reaffirmed its earnings guidance for the full year 2025, maintaining prior expectations for net sales, EBIT margin, and EPS between $0.50 and $0.70 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased modestly from $14.66 to $14.11 per share.
- Discount Rate remains unchanged at 13.28%.
- Revenue Growth estimate has risen slightly, moving from 1.29% to 1.32%.
- Net Profit Margin has fallen marginally from 8.25% to 8.05%.
- Future P/E ratio estimate has declined slightly from 17.29x to 17.02x.
Disclaimer
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