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Research Alert: CFRA Keeps Hold Opinion On Shares Of Cnh Industrial N.v.
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Research Alert: CFRA Keeps Hold Opinion On Shares Of Cnh Industrial N.v.
Aug 6, 2025 9:41 AM

12:25 PM EDT, 08/06/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We adjust our 12-month target price for CNH Industrial ( CNH ) to USD13 from USD14, implying a 2025 P/E multiple of 20.7x, above its five-year average forward P/E of 12.4x, justified by expected margin recovery, in our view. We leave our EPS forecasts unchanged. In Q2 2025, net income fell 46% Y/Y to USD217M, with diluted EPS at USD0.17 (Q2 2024: USD0.32). The adjusted EBIT margin contracted by 490 bps to 5.6%, due to lower volumes and operational inefficiencies. Despite earnings pressure, we view improved free cash flow positively, with free cash flow from Industrial Activities rising to USD451M, up USD311M Y/Y, on favorable working capital. Management reaffirmed its 2025 guidance despite ongoing softness in Agriculture and Construction markets. While we acknowledge CNHI's efforts in cost control and production alignment, we believe visibility remains limited. Risks tied to global trade policy, geopolitical instability, and potential volatility in customer demand continue to cloud the near-term outlook.

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