Citi expects US core machinery markets to bottom in 2025

PACCAR

09/12/2024 12:53

** Citi Research expects U.S. core machinery markets -
including truck, agricultural and construction - to likely
bottom in 2025 
    ** Brokerage says caution is warranted heading into 2025
citing moderating inflation
    ** "We view Trump's second term as more supportive of capex
and machinery demand and prices" - brokerage
    ** Citi expects 2025 to a "big down year" for agricultural
equipment; assumes slight demand recovery and sees potential for
re-stock in 2026
    ** Sees global unit sales of construction equipment to
bottom in 2025 due to material weakness in China and Europe
    ** Brokerage picks some U.S. machinery stocks such as CNH
Industrial  CNH.N , Caterpillar  CAT.N , Cummins  CMI.N  and
PACCAR  PCAR.O  as top picks 
    ** Up to last close, S&P 500 Machinery index  .SPLRCMAC  up
24.20% YTD

 (Reporting by Anshuman Tripathy)
 ((Anshuman.Tripathy@thomsonreuters.com))