Trimble Inc. (TRMB) PT Raised to $73 at Piper Sandler

Piper Sandler analyst Clarke Jeffries raised the price target on Trimble Inc. (NASDAQ: TRMB) to $73.00 (from $68.00) while maintaining a Overweight rating.

The analyst commented, "In the coming weeks, Trimble will host a 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 4Q23 call there are some insights we have today: 1.) Trimble is likely operating a top 3 AECO software business: $1.3B revenue (FY24E) with a 95% recurring mix, 2.) EBITDA margins of AECO business are likely mid-20s based on an estimated low-30% margin for Civil Construction (moving into Field Systems), and 3.) 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. Based on an average 30x EBITDA multiple across Ro40 vertical software peers, the $325M+ EBITDA AECO business could be worth ~$10B."

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