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
CNH Industrial: Another Guidance Cut, Still A Buy
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.
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