Trimble Navigation's (TRMB) Business Fundamentals Strong, Reiterated 'Buy': Deutsche Bank
Thursday, February 02, 2022 9:37 AM

Deutsche Bank (DB) reiterated its "Buy" rating on Trimble Navigation Ltd. (NASDAQ:TRMB), saying overall business fundamentals remain healthy though visibility on the company’s quarters is always poor.

The Sunnyvale, California-based provider of advanced positioning product services is due to report its quarterly numbers after the market closes on Thursday.

Jonathan Goldberg, an analyst at DB, said the company's Field Solutions segment continues to benefit from strong crop prices, Engineering and Construction segment trends are at least not getting worse and Mobile Solutions segment should show signs of continued improvement.

"This month, the hot topic on Trimble is the extent to which their Ag business is ‘over-earning’. We think segment margins and their contribution to corporate earnings are higher than average, but see no near-term change in this trend," Goldberg wrote in a note. "We think growth in this segment will slow next year, but remain healthy."

Goldberg said long-term thesis on Trimble holds that the company should be able to add higher software content to each sale. He sees the Tekla acquisition in a positive light, as a foundation for a broader software platform they can leverage across their existing contractor relationships. Goldberg has a price target of $50.00 on the stock.

TRMB shares, which have been trading between $31.88 and $52.30 over the 52-week period, rose 1.6 percent to end at $47.59 on Wednesday.