Trimble upgraded to Overweight on software bull case at Piper Sandler

Piper Sandler last night upgraded Trimble to Overweight from Neutral with a price target of $68, up from $51, following the Q4 report. The company “could at last be in a place where a software-centric bull case could emerge” where recurring revenue rises beyond 55% of mix, growing double-digits organically, capable of delivering mid-teens EBIT growth, the analyst tells investors in a research note. The firm sees upcoming catalysts in the re-segmentation disclosure, $1.1B of debt paydown, up to $800M of share repurchases in 2024, and a second half of 2024 analyst day with updated targets.