Greenlight’s Einhorn Bets on Agricultural Machinery Despite Industry Slump
Greenlight Capital founder David Einhorn sees opportunity in the agricultural equipment industry despite widespread market pessimism, announcing Wednesday a new position in CNH Industrial (NYSE: CNH), a farm machinery maker.
“It’s exactly the kind of situation that absolutely nobody cares about right now because it’s cheap, and the news over the next period of time isn’t going to be very good,” Einhorn told CNBC’s Leslie Picker during a Delivering Alpha conference panel.
The industry faces low agricultural prices and declining machinery sales. “This year, the ag equipment universe is probably 20% below its average at the end of the whole recycle,” Einhorn said. He expects the sector to climb “20% above” average in three to four years as farmers replace aging equipment.
CNH Industrial, formerly Case New Holland, pays a dividend exceeding 4% and buys back shares while maintaining low debt levels. The stock has fallen more than 12% this year.
“You had a period where you had a bit of a boom in agriculture equipment purchases, and now that’s turned into a cyclical bust,” Einhorn said. He expects earnings to improve by next year or early 2026.
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