Oppenheimer Reiterates Outperform on Trimble (TRMB)

Oppenheimer reiterated an Outperform rating and $32.00 price target on Trimble Navigation (NASDAQ: TRMB) following the company's announced divestment in its drone equipment business. Oppenheimer also updated its proprietary composite, aggregating various macro data across TMRB's end markets and company segments.

Analyst Colin Rusch commented, "We are encouraged to see TRMB’s announced divestment in its drone equipment business as it continues to migrate its portfolio toward an information/analytics-driven model which we believe will carry a higher margin and stickier customer base. In addition, we update our proprietary composite which indicates a flat backdrop vs. 2Q16 highlighting ongoing headwinds faced by OEMs, particularly in construction and agriculture end markets. We expect Mobile Solutions software revenue to outperform given sizeable hardware deployments in 1H16 despite a challenging environment for fleet operators. We reiterate our Outperform rating as we believe TRMB is demonstrating a more comprehensive solution for optimizing the entire supply chain in its targeted markets and is positioned to benefit from accelerated technology replacement cycles despite slower capital equipment spending."

For an analyst ratings summary and ratings history on Trimble Navigation click here. For more ratings news on Trimble Navigation click here.

Shares of Trimble Navigation closed at $28.60 yesterday.

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