Trimble price target lowered to $59 from $68 at Oppenheimer

Oppenheimer lowered the firm’s price target on Trimble to $59 from $68 on multiple compression, while keeping an Outperform rating on the shares. The firm is defending shares of Trimble following its 15% selloff on a mixed Q3 print and lowered FY guidance. While still in transition, Oppenheimer believes Trimble is turning a corner, beginning with the AGCO JV announcement, which will significantly move the needle toward recurring revenue and flat EBITDA margin post-close, while simplifying the portfolio. KPIs for TC1 and platform-as-a-service further validate improving visibility for the remaining business, the firm adds. Further, Oppenheimer believes cost-savings actions announced in Q3 are a welcome development, addressing earnings conversion.