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Investing.com — American-Italian company CNH Industrial NV (NYSE:CNHI) saw its shares rise 3.1% Monday after Morgan Stanley resumed coverage of the stock with an Overweight rating and $24 price target.
Analyst Courtney Yakavonis cited the company’s spin-off of truck-making business Iveco Group, stating CNH Industrial will become a pure-play agriculture equipment company, “with strong industry tailwinds and underappreciated sales drivers.
CNHI shareholders will receive 1 new Iveco share for every 5 CNHI shares as part of the spin-off, which is due to be in effect January 1st. In November, analysts said Iveco could have a market value of around 4 billion euros.
Yakavonis added that CNHI will have idiosyncratic margin levers, an attractive relative valuation, and an upcoming catalyst at its capital markets day on February 22.
Today’s comments on the stock have seen its U.S.listed shares hit a high of $19.69.
