CNH Industrial (NYSE: CNHI) faced a downgrade to Neutral from Buy by Bank of America analysts on Monday. This decision stems from increased uncertainty surrounding the company after the unexpected appointment of a new chief executive.
Gerrit Marx will assume the CEO role on July 1, replacing Scott Wine, who is departing for other ventures. Concurrently, the company has postponed its annual investor day.
Bank of America noted that Wine’s leadership had recently yielded positive outcomes in cost reductions, inventory management, and product lineup simplification. Consequently, BofA has lowered its price target for CNH (CNHI) from $15.50 to $13.20 per share, adjusting the estimated price-to-earnings multiple from 10 times to 8.5 times.
