CNH’s Q4 22 results beat estimates on the back of strong pricing, which (again) offset cost inflation. The company issued a shining guidance for 2023 with sales growing 6-10% mainly driven by pricing, while FCF generation is targeted slightly below FY22’s impressive level. However, management’s prudent comments on 2024 during the conference call confirms the industry is approaching the peak of the cycle, certainly capping the upside risk on CNH’s shares.
