Piper Sandler analysts upgraded Trimble (NASDAQ:TRMB) to Overweight from a previous investment rating of Neutral after the company's results beat along with favorable 2024 catalysts.
Piper Sandler said that the rating upgrade was made keeping in mind the company's upcoming catalysts, which are resegmentation disclosure, $1.1B of debt paydown, up to $800M of share repurchases in 2024, and 2H analyst day with updated targets. The price target on TRMB was also hiked to $63 from $51.
"Based on the guides for: +5.5% organic growth, +12% ARR growth & 26%+ EBITDA margins for 2024, we believe TRMB could at last be in a place where a software-centric bull case could emerge where recurring revenue rises beyond 55% of mix, growing double-digits organically, capable of delivering mid-teens EBIT growth," Piper Sandler analysts wrote in a Feb 12 research note.
Trimble on Monday before the bell reported Q4 non-GAAP EPS of $0.63, beating estimates by 3 cents. Revenue of $932.4M topped consensus by $20.83M.
Shares rose as much as 4.5% to $57.15 on Tuesday. TRMB stock is up 5% YTD.