Piper Sandler Upgrades Trimble Navigation (TRMB) to Overweight, 'Better Organic Growth, Debt Paydown, & Buybacks'

Piper Sandler analyst Clarke Jeffries upgraded Trimble Navigation (NASDAQ: TRMB) from Neutral to Overweight with a price target of $68.00 (from $51.00).

The analyst comments "Trimble reported Q4 results with total revenue 2% ahead of Street and EPS 5% ahead, but more importantly, discussed FY24 guidance which contemplates the closing of the Precision Ag divestiture. While FY24 revenue guidance was below our estimate, the primary difference was timing of the transaction close & a lower Ag run-rate in Q1, based on partnership transition. Ex-Precision Ag & 53rd week, our FY24 revenue estimate was: $3.43B vs. midpoint of guidance at: $3.46B. As we profiled in our prior note, TRMB 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. We are upgrading TRMB to Overweight from Neutral with a $68PT, with a focus on upcoming catalysts: resegmentation disclosure, $1.1B of debt paydown, up to $800M of share repurchases in 2024, and 2H analyst day with updated targets."

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 $52.51 yesterday.

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