Goldman Sachs issued a research report on Monday, downgrading CNH Industrial N.V. from a "Buy" to a "Neutral" rating and lowering its price target from $12 to $10.50. The stock closed at $10.96 last Friday, already above the new target.

Analyst Daniela Costa cited two primary reasons for the downgrade. First, since Goldman Sachs upgraded the stock in January 2026, CNH Industrial has delivered a cumulative return of 17.2%, outperforming the industry average. Second, the stock's valuation is now considered more reasonable due to persistent weakness in North American agricultural demand, increasing tariff pressures, and a stalled recovery in the European construction sector, among other headwinds.

Financial reports show that CNH Industrial's first-quarter 2026 net profit plummeted 92% year-over-year to $10 million, with earnings per share of just $0.01. Despite this, the stock price rose 8% following the earnings release. Analysts attribute this to market optimism regarding factors such as inventory normalization and potential government subsidies.

Despite the weak first-quarter performance, CNH management reaffirmed its full-year earnings per share guidance of $0.35 to $0.45, characterizing the first quarter as the trough of the current agricultural cycle. However, Goldman Sachs has reduced its 2026 EBIT forecast for the company by 7%, which is 24% below the current market consensus, indicating a more cautious outlook on the company's recovery prospects.