CNH Industrial discounted valuation unwarranted, says Citi

Citi analyst Timothy Thein says that while a discount to Deere (DE) is "clearly justified," CNH Industrial’s (CNHI) current valuation gap versus Agco (AGCO) is unwarranted. CNH’s competitive positioning, margin runway and return on invested capital profile argue for a valuation somewhere in between its largest global agriculture peers, the analyst tells investors in a research note. The firm sees 20% 12-month upside for the stock based on its $19 price target, and expects a "relatively strong" global ag equipment market into 2024. It keeps a Buy rating on CNH Industrial.