Trimble price target raised to $73 from $68 at Piper Sandler

Piper Sandler raised the firm’s price target on Trimble to $73 from $68 and keeps an Overweight rating on the shares ahead of conference call to review the new reporting structure, with two years of trailing financials and footing to 2024 guidance. Based on the initial disclosure on the Q4 2023 call, Trimble is likely operating a top 3 AECO software business, EBITDA margins of AECO business are likely mid-20s based on an estimated low-30% margin for Civil Construction, and with Buildings & Infrastructure seeing ARR growth of just under 20% in 2023 – it’s likely the AECO business is growing mid-teens+ in 2024 and operating at a Rule of 40 profile overall, the firm says.