Goldman Sachs analyst Daniela Costa downgraded CNH Industrial to Neutral from Buy with a price target of $12.14, down from $14.42. The analyst says still elevated fertilizer prices and drought, water and labor issues will put a ceiling to further meaningful farmer income increases, which she sees as the main driver for CNH’s agriculture business, given the age of equipment is at long-run average levels. In addition, weakening construction barometers will cap growth in the company’s construction equipment business as well, Costa tells investors in a research note. As such, Costa sees limited upside potential in shares of CNH Industrial.
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