Analyst update and valuation context
DA Davidson raised its price objective for CNH Industrial to $12.00 from $10.00 but kept a Neutral rating on the stock. The new target sits below the prevailing market quote of $12.94. InvestingPro data referenced by market observers shows the shares trading above what that service lists as Fair Value, with a reported price-to-earnings ratio of 30.76.
Drivers behind the revision
The firm adjusted its target after CNH Industrial released its fourth-quarter 2025 earnings report. While the quarter produced an earnings beat, DA Davidson highlighted that the company’s outlook for 2026 came in below expectations, with particular weakness expected in the first half of the year due to ongoing headwinds in the North American agricultural sector. Consistent with that view, InvestingPro data indicates analysts are forecasting a roughly 2% decline in sales for the current year.
Company execution and margin trajectory
DA Davidson noted CNH Industrial is implementing previously announced initiatives that include new product rollouts and efforts to improve profit margins. The analyst house said it is seeing early results from those measures. Management reported approximately 3% EBIT margins in 2026, against a stated longer-term objective of reaching 16% to 17% EBIT margins by 2030. DA Davidson characterized progress as steady and left open the possibility of adopting a more constructive view as the company’s turnaround story unfolds further.
Quarterly results and market reaction
For the fourth quarter of 2025 CNH Industrial reported diluted earnings per share of $0.19, ahead of the consensus forecast of $0.11, a positive surprise calculated at 72.73%. Quarterly revenue was $5.16 billion, versus a forecast of $4.97 billion. Despite the earnings beat and slightly stronger sales, the stock showed weakness in pre-market trading, reflecting investor concern about the outlook and near-term sector pressures.
Implications for investors
The analyst action underscores a cautious stance: DA Davidson recognizes tangible execution on cost and product initiatives but appears to balance that against softer near-term demand in agriculture and a revenue trajectory that analysts expect to contract this year. The firm signaled it could become more favorable on CNH Industrial if the company demonstrates continued progress toward its margin targets and other elements of its turnaround plan.
Key points
- DA Davidson raised its CNH Industrial price target to $12.00 from $10.00 and maintained a Neutral rating; the target is below the current share price of $12.94.
- CNH beat fourth-quarter 2025 EPS estimates with $0.19 versus $0.11 forecast and reported $5.16 billion in revenue versus $4.97 billion forecast.
- Analysts and the company flagged a weaker 2026 outlook, with particular pressure expected in the first half driven by the North American agricultural sector; consensus forecasts imply a 2% sales decline for the year.
Risks and uncertainties
- Near-term demand risk in North American agriculture could further pressure revenues and margins, affecting industrial equipment makers and agricultural machinery suppliers.
- CNH’s reported roughly 3% EBIT margins in 2026 remain far below its 16% to 17% margin target for 2030, creating execution risk around meeting long-term profitability goals.
- If the early margin and product initiatives do not scale as expected, investor sentiment and the stock’s market performance could face downside, impacting industrial and capital goods market segments.
These developments form the latest public signals on CNH Industrial’s operational progress, financial results, and near-term outlook.