Inside the Market’s roundup of some of today’s key analyst actions
) surprise cut to its implied fourth-quarter guidance and “lukewarm” outlook for 2025 prospects released last week alongside a lack of market visibility, uncertainty on tariffs and a delay in realizing de-leveraging/growth plans may “weigh on shares until clear signs of a turnaround.”
“While Farm segment sales could rebound in 2026 from pent- up demand, we see uncertainty on the timing and magnitude of a U.S. Farm segment recovery given very strong North American Farm segment sales in 2022/2023 and a typical replacement cycle for portable grain handling equipment of 3-7 years,” he said. “We also flag potential uncertainty around U.S./Canada trade tariffs, with ~10% Farm segment revenue related to Canadian-produced products sold into the U.S..
“To summarize, the company provided its 2025 outlook and revised its five-year plan, which suggests a pivot to reinvestment from its prior stance of income. Notably, the investments laid out within its program are positioned to opportunistically capitalize on the inherent operating leverage of its excess infrastructure capacity, towards maximizing long-term cash flow and associated value in to an improving price environment.
“To contextualize the 111 basis points jump in the US 10-year yield over the last four months, we examined NTM price returns of our coverage over the past 12 years,” he said. “In fact, our coverage outperformed broader indices as yields moved upwards. For our current coverage specifically, average relative outperformance stood at 8 per cent and 6 per cent, respectively, for industrials vs. the TSX and S&P 500, respectively, on a 12-months basis.
After combining industry trends and foreign exchange considerations with recent discussions with management teams, Mr. Sytchev now sees “more downward than upward adjustments” for fourth-quarter 2024 results for companies in his coverage universe with the lone exception being
Analysts Upgrades Downgrades Ratings Changes
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