Trimble's Growth Catalysts: Analyst Upgrades Stock On Strong Growth Potential Amid Debt Reduction And Buyback
Portfolio Pulse from Nabaparna Bhattacharya
Piper Sandler analyst Clarke Jeffries upgraded Trimble Inc. (NASDAQ:TRMB) to Overweight from Neutral and raised the price target to $68 from $51, citing growth catalysts such as resegmentation, debt reduction, and share repurchases. Despite FY24 revenue guidance being below estimates, the underlying business is expected to grow ~8% y/y with ~27% EBITDA margins. The upgrade follows Trimble's Q4 earnings beat with 9% revenue growth and strong recurring revenue.
February 13, 2024 | 6:45 pm
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Trimble Inc. was upgraded by Piper Sandler to Overweight from Neutral, with a price target increase to $68 from $51, following strong Q4 earnings and growth potential.
The upgrade by Piper Sandler to Overweight and the increase in price target to $68 from $51 are strong indicators of confidence in Trimble's growth potential. This is further supported by Trimble's recent Q4 earnings beat, its plans for debt reduction, and share repurchases. The analyst's positive outlook on the company's future growth, especially in software-centric areas with rising recurring revenue, suggests a bullish sentiment that could positively impact TRMB's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100