CNH Industrial (CNH – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Angel Castillo from Morgan Stanley reiterated a Buy rating on the stock and has a $15.00 price target.
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Angel Castillo has given his Buy rating due to a combination of factors that highlight CNH Industrial’s strategic initiatives and financial targets. The company has set ambitious mid-cycle adjusted EBIT margin goals for its Agriculture and Construction segments by 2030, aiming for 16-17% and 7-8% respectively. These targets represent significant improvements from their 2024 levels and are expected to be achieved through self-help measures such as commercial growth initiatives, operational efficiencies, and quality improvements.
CNH Industrial’s focus on integrating Precision Tech products, refining go-to-market strategies, and optimizing manufacturing processes further supports the potential for margin expansion. Additionally, the company’s plan to achieve over $550 million in operational and quality cost savings by 2030 reinforces confidence in its ability to enhance earnings stability. Castillo’s rating reflects the belief that CNH’s strategic actions will address previous execution challenges and position the company for growth, even amidst macroeconomic uncertainties.
In another report released today, Barclays also maintained a Buy rating on the stock with a $16.00 price target.
Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CNH in relation to earlier this year.