Deutsche Bank Starts Cummins (CMI) at Sell

September 6, 2016 4:50 PM EDT
Get Alerts CMI Hot Sheet
Price: $126.69 +0.04%

Rating Summary:
    5 Buy, 16 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 26 | Down: 29 | New: 38
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Deutsche Bank initiated coverage on Cummins (NYSE: CMI) with a Sell rating and a price target of $111. Analyst Nicole DeBlase sees sees $0.90 mid-cycle EPS downside for Cummins from this market share pressure.

"Cummins’ share of the NAFTA heavy-duty truck engine market has fallen 16ppts from peak, to 29%, but we see the potential for 14ppts of additional pressure over time, as PACCAR moves towards its 85% internal engine penetration goal. Moreover, Daimler is entering the NA medium-duty truck engine market with its DD5/DD8 platforms (DD8, the most viable competition with Cummins’ ISB engine, launches in 2018e), and this represents 16ppts of long-term market share risk (vs. 75% NAFTA medium-duty share guidance for 2016e). Combined, we see $0.90 mid-cycle EPS downside for CMI from this market share pressure; we do not believe consensus reflects this," said DeBlase.

For an analyst ratings summary and ratings history on Cummins click here. For more ratings news on Cummins click here.

Shares of Cummins closed at $126.16 yesterday.

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