CNH Industrial: Another Guidance Cut, Still A Buy
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CNH Industrial has revised its FY24 targets due to weak demand and high inventories, with further production cuts expected into H1 2025. Despite this, cost-cutting measures and resilient pricing are expected to limit downside risks, and the company remains a buy.
December 21, 2024 | 5:00 am
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NEUTRAL IMPACT
CNH Industrial has cut its FY24 guidance due to weak demand and high inventories, with further production cuts expected into H1 2025. However, cost-cutting and resilient pricing are expected to limit downside risks, and the company remains a buy.
The guidance cut reflects current challenges, but the company's strategic measures to manage costs and maintain pricing suggest limited downside risks. The anticipation of a bottom in the AG industry's downcycle and potential for margin improvement support a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100