UBS Raises Price Target on Cummins (CMI) to $136; Reiterates Neutral
- Wall Street hits new high as post-election rally roars ahead
- Lower for longer, ECB scales back asset buys
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Oil rises above $50 despite doubts over OPEC output cut
- Pre-Open Stock Movers 12/08: (VYGR) (TLRD) (LULU) Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
UBS reiterated a Neutral rating on Cummins (NYSE: CMI), and raised the price target to $136.00 (from $119.00), seeing a path to recovery in 2018. In order to get more positive on CMI, UBS would want to see indications of better used truck pricing and a clearing of channel inventories of used equipment. Additionally a commitment to use its balance sheet more aggressively could support the stock. The primary challenge is an overhang of used trucks that is expected to continue to be a drag on the market through 2017.
Analyst Steven Fisher commented, "The NA heavy-duty truck market remains CMI's biggest market. While we see a path to recovery for the NA Truck market in 2018, and CMI screens at a discount to other large-cap machinery stocks, we think a modest recovery in 2018 is already priced in, given some of the structural headwinds that CMI faces in NA heavy duty truck. CMI's dividend yield is at the higher end of its industrial peers, supported by strong cash flows. We think this helps support the stock in the face of still weak truck markets."
Shares of Cummins closed at $139.35 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades Timken (TKR) to Hold
- UBS Raises Price Target on Lowe's Cos. (LOW) Following Analyst Meeting
- Guggenheim Reiterates Buy on United Natural Foods (UNFI) Following 1Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
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!