CNH Industrial: Another Guidance Cut, Still A Buy

Dec. 20, 2024 11:47 PM ETCNH Industrial N.V. (CNH) Stock
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Mare Evidence Lab
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(9min)

Summary

  • Q3 results led to revised FY24 targets due to weak demand and high inventories, with further production cuts expected into H1 2025.
  • FY25 is anticipated to mark the bottom of the AG industry's downcycle, with cost-cutting measures and resilient pricing expected to limit downside risks.
  • As industry demand may be nearing its bottom, CNH’s efforts to boost its mid-cycle margin structurally may drive a share re-rating. For this reason, we confirm our buy.

Harvester combine harvesting wheat on agricultural field on sunny summer day

aslanyus/iStock Editorial via Getty Images

Following our last update, 'We Are Looking Ahead, Buy Confirmed,' CNH Industrial's (NYSE:CNH) stock price recovered by 11.95%. (Fig 1). After the Farm Progress expo in Iowa, we were pricing negative expectations on the

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Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CNH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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