CNH Industrial Resumed With Overweight Rating On Strong Tailwinds

By Sam Boughedda — American-Italian company CNH Industrial NV (NYSE:) saw its shares rise 3.1% Monday after Morgan Stanley resumed coverage of the stock with an Overweight rating and $24 price target. 

Analyst Courtney Yakavonis cited the company’s spin-off of truck-making business Iveco Group, stating CNH Industrial will become a pure-play agriculture equipment company, “with strong industry tailwinds and underappreciated sales drivers.

CNHI shareholders will receive 1 new Iveco share for every 5 CNHI shares as part of the spin-off, which is due to be in effect January 1st. In November, analysts said Iveco could have a market value of around 4 billion euros.

Yakavonis added that CNHI will have idiosyncratic margin levers, an attractive relative valuation, and an upcoming catalyst at its capital markets day on February 22.

Today’s comments on the stock have seen its U.S.listed shares hit a high of $19.69.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.