Large Upside Expected For TRMB In 4Q

Piper Jaffray has published a research report on Trimble Navigation TRMB as the company benefits from industry growth. In the report, Piper Jaffray writes "In the past two weeks, two of Trimble's competitors in the precision ag market have reported quarterly strong results; these favorable trends and outlook validate our positive stance to this segment of Trimble's business (which accounts for ~25% of sales and ~40% of profits).Recent quarterly results from precision ag industry peers Raven Industries and Hemisphere validate our view that this segment of Trimble's business will be a key source of growth – and potentially upside – in 4Q and 2011. Elevated grain prices, rising farm incomes, and an early harvest season will all contribute to a strong selling season through the Spring, in our view. We believe our 17% Field Solutions segment-level revenue growth assumption for 4Q/FY11 may prove conservative and drive upside to our model." Piper Jaffray maintains its Overweight rating and $44 price target. Trimble Navigation closed yesterday at $36.71.