NEW YORK, September 3, 2026, 02:00 EDT —
- CNH Industrial finished higher at $13.65, gaining 9.2% after an upgrade from Evercore ISI.
- The revised $18 target signals a 31.9% potential gain, contingent on a robust equipment rebound in 2027.
- Industrial margin for the second quarter declined to 4.0%, and free cash flow decreased to $150 million.
Shares of CNH Industrial N.V. NYSE:CNH surged 9.2% to $13.65 on Wednesday. Evercore ISI upgraded the stock to outperform from in-line and raised the price target to $18 from $12.50. Trading volume totaled 53.8 million shares.
The change brought the valuation test ahead. CNH is currently priced 9.2% higher than Evercore’s previous target, while the farm cycle recovery is yet to happen.
The revised target points to a 31.9% gain from the close on Wednesday. The figure is also 37.4% higher than the wider $13.10 average target noted following the upgraded rating.
The upgrade reset CNH’s valuation marker
Dollar targets and September 2 close; ratings cover 15 analysts.
Sources: Evercore ISI data reported by Investing.com; MarketBeat consensus; Yahoo Finance close.
Over the five sessions ending September 2, shares climbed 19.4%. Trading volume on Wednesday reached 1.6 times the average of the previous five sessions.
Source: Yahoo Finance historical prices. Chart uses the five sessions ending September 2.
Deere & Company NYSE:DE climbed 3.3% following the same upgrade. CNH posted a bigger gain, reflecting heightened potential for operating leverage from the bottom.
Evercore analyst David Raso cited aging machinery in the United States and reduced inventory levels at dealerships. He projected combine demand would rise 37% by 2027 and high-horsepower tractor demand would climb 27%.
Recent performance continues to show significant weakness. Industrial sales increased by 3% in the second quarter, while the adjusted industrial EBIT margin dropped 1.6 points to 4.0%.
The agriculture margin declined by 2.9 points to reach 5.2%. Industrial free cash flow decreased to $150 million, compared with $451 million previously.
Chief Executive Gerrit Marx described it as a “market that remains at the trough of the agriculture cycle.” CNH reiterated its 2026 adjusted EPS guidance of $0.41–$0.46.
The rally depends on earnings nearly doubling in 2027
EPS in U.S. dollars; price-to-EPS multiples use the $13.65 close. Estimates are Evercore ISI’s.
Sources: CNH 2026 guidance; Evercore estimates reported by Investing.com. Multiples are calculated from cited figures.
The gap is significant. Evercore projects $0.82 for 2027, which is 89% higher than CNH’s 2026 guidance midpoint.
Risks: North America saw a 17% decline in large tractor demand and a 7% decrease for combines in the second quarter. Tariffs, low crop prices and financing pressures may push back replacement purchases.
CNH reported a rise in receivables more than 30 days overdue to 4.4%, up from 3.9%. Net income at Financial Services declined 18% to $71 million.
The week ahead will test the narrative with fresh farm data. The USDA plans to release its Crop Progress report on September 8, followed by its Crop Production report on September 11.
Such releases may shift crop income forecasts ahead of any uptick in machinery orders. Following the rally on Wednesday, CNH needs to turn its cyclical outlook into stronger margins and cash flow.
