Deutsche Bank Starts Cummins (CMI) at Sell
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
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.
Shares of Cummins closed at $126.16 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Pivotal Research Upgrades Flowers Foods (FLO) to Hold
- BTIG Starts Mitek Systems (MITK) at Buy
- BMO Capital Raises Price Target on Dollar Tree (DLTR) to $96; Reiterates Market Perform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Related EntitiesDeutsche Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!