Piper Jaffray Remains Sidelined on CNH Industrial N.V. (CNHI) Following Solid 4Q Results
Piper Jaffray maintained a Neutral rating on CNH Industrial N.V. (NYSE: CNHI), and cut the price target to $7.00 (from $8.00), following the company's 4Q earnings report. CNHI reported 4Q modestly above expectations, where revenue came in just above Street estimates. Adjusted EPS of $0.19 was modestly above Street estimates of $0.16.
Analyst Brett Wong commented, "We are adjusting our FY16 estimates and rolling out FY17 following CNHI Q4 results, which beat expectations modestly on less-pronounced declines in the ag segment. Underproducing demand and positive net price realization helped CNHI improve all industrial operating margins y/y. Management guided FY16 revenue below Street expectations and we are lowering our FY16 expectations across the construction, ag, and commercial vehicles as we have a cautious outlook on FY16; now expecting $0.37 EPS. Based on our new FY17E EPS of $0.44 and peer group multiple of 16x, we are lowering our price target to $7 and continue to express our concern of a potential elongated lull in demand for farm machinery."
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Shares of CNH Global NV closed at $6.26 yesterday.