Baird comments on potential implications from potential second Trump presidency

Baird commented on potential implications from a potential second Trump presidency, forecasting benefits for Ag/Hospitality/Food Processing, supply chain realignment, and Oil & Gas. The firm says labor is likely to get tighter and more expensive, and this will become a structural rather than cyclical dynamic driving automation, with Deere (DE), CNH Industrial (CNH), and Agco (AGCO) benefiting in Ag, and JBT Corp. (JBT) and Middleby (MIDD) in Food Processing/Hospitality. In addition, the firm says that the elimination of EV incentives and broader subsidies for clean energy is likely to have meaningful consequences, a negative for Lincoln Electric (LECO) and Illinois Tool Works (ITW), and also having negative implications for United Rentals (URI), Herc Holdings (HRI) and equipment suppliers. Further, Baird contends that Trump would seek to end the temporary pause on LNG export permits, halt a pending EPA rule to charge oil & gas companies fees for methane emissions, improve the ability to drill onshore, and expand offshore oil & gas leases, and companies that would benefit from increased U.S. oil & gas activity include Caterpillar (CAT) and ESAB (ESAB). Meanwhile, the firm states that Republicans will make permanent the provisions of the Trump Tax Cuts and Jobs Act, and lower regulations could benefit M&A, particularly serial acquirers Parker-Hannifin (PH).