Credit Suisse Sees ~30% Upside Potential In CNH Industrial Impressed By Reasonable Financial Targets & Simple Portfolio - CNH Industrial (NYSE:CNHI)

Credit Suisse analyst Jamie Cook initiated coverage on CNH Industrial NV CNHI with an Outperform rating with a price target of $21.
Under the leadership of Chief Executive Officer Scott Wine, CNH Industrial has taken a number of strong actions to simplify the portfolio, the analyst said.
In January 2022, CNHI demerged from the commercial vehicle business, Iveco, and is now a pure-play farm and construction equipment company, the analyst added.
Also Read: Credit Suisse Thinks Strength Across Segments Positions Deere In Spotlight
CNH acquired Raven to bolster its Precision AG capabilities and Sampierana to round out its construction offering.
The analyst sees more transformative portfolio actions largely complete, with the new CNHI simplified and refocusing its efforts on the customer.
Organic investment is focused on new products and technology, enabling the company to remain a leading manufacturer and gain share in select markets, the analyst added.
By 2024, CNH targets Industrial Activities net sales of $20 billion – 22 billion, representing a ~6% CAGR, and adjusted EBIT margins of 12-13%.
CNH Industrial expects to gain market share by more than 200 basis points over the three-year planning period (2022-24), driven by new product launches, and assumes minimal volume growth from the Farm Equipment market.
The analyst believes the company’s targets are reasonable and have potential upside.
While macro concerns continue to weigh on the broader industrial group, the analyst expects farm equipment names to be more resilient in a recession.
Also See: Cathie Wood's ARK Invest Sells Shares In 2 Manufacturers With Increasing Dividends
Price Action: CNHI shares are trading higher by 1.61% at $16.09 on the last check Tuesday.
Photo Via Company

Market News and Data brought to you by Benzinga APIs