Bernstein raises CNH Industrial stock price target on portfolio shift

Investing.com reports that Bernstein SocGen Group has increased its price target on CNH Industrial (NYSE:CNH) to $12.00, up from $9.00, while retaining a Market Perform rating. The company delivered adjusted earnings per share of $0.16, surpassing Street estimates by 60%. CNH Industrial's shares rose by 9.3% on the news, reaching $12.82 and delivering a year-to-date increase of 40%.

The firm anticipates fiscal year 2026 adjusted EPS of $0.46, one cent above consensus, fueled by optimistic expectations in the Construction Segment.

CNH Industrial has entered into a joint venture with Kobelco, valued at $1 billion with Kobelco holding a 70% stake. The venture will be financed with $700 million in cash. This strategic move aims to allow CNH to focus on its higher-margin agriculture segment, bolster its balance sheet, and support the development of new agriculture product lines. The deal is projected to close by the end of 2027 and will be subject to a three-year lockup period.

Despite the positive news, CNH Industrial trades at a P/E ratio of 52.5, which according to InvestingPro analysis, suggests the stock is overvalued relative to its Fair Value. Investors can find additional insights into the company's valuation and growth potential through 8 more InvestingPro Tips.