CNH Industrial’s Strategic Ambitions and Near-Term Challenges: A Hold Rating Amid Uncertainty

Analyst Michael Feniger of Bank of America Securities maintained a Hold rating on CNH Industrial (CNH – Research Report), retaining the price target of $13.60.

Michael Feniger has given his Hold rating due to a combination of factors surrounding CNH Industrial’s current strategic position and future outlook. The company has outlined ambitious goals for 2030, focusing on internal improvements such as enhancing product quality and executing a significant cost reduction program. While these initiatives present clear opportunities for growth, they also place considerable demands on the relatively new management team, especially in the face of external uncertainties like tariffs and agricultural market fluctuations.
Despite the potential for internal improvements to drive significant gains, Feniger notes that CNH’s agricultural margins are expected to decline in the near term due to a downturn in equipment demand. This cyclical challenge, combined with the ambitious nature of CNH’s long-term targets, suggests that while there is upside potential, the timing of these improvements remains uncertain. As such, Feniger maintains a neutral stance, reflecting both the opportunities and the challenges that CNH faces in achieving its strategic objectives.

Feniger covers the Industrials sector, focusing on stocks such as United Rentals, CNH Industrial, and Caterpillar. According to TipRanks, Feniger has an average return of 12.0% and a 65.89% success rate on recommended stocks.

In another report released on May 5, D.A. Davidson also maintained a Hold rating on the stock with a $12.50 price target.