Benzinga | Sep 23, 2021 12:05PM EDT

This Analyst Sees 17% Downside In Trimble - Read Why

* Morgan Stanley analyst Meta Marshall downgraded Trimble Inc (NASDAQ:TRMB) to Underweight from Equal Weight with a price target of $74, down from $80, implying a 17.6% downside.

* Marshall believes the stock's year-to-date multiple expansion necessitates a greater level of earnings upside than would likely be achievable as the company laps tougher comps heading into FY22.

* Marshall now forecasts about 7% year-over-year revenue and 15% year-over-year EPS growth for Trimble in FY22 but thinks greater than $3.25 in FY22 EPS, or about 10% above her estimate, will be needed to drive upside from current levels.

* Trimble provides location-based solutions used in global positioning systems (GPS), laser, optical, and inertial technologies.

* Price Action: TRMB shares traded lower by 0.72% at $89.87 on the last check Thursday.