Cummins (CMI) Bullish Stance Reiterated at Piper Jaffray Following Roadshow

Piper Jaffray analyst Alexander Potter reiterated an Overweight rating and $162 price target on Cummins (NYSE: CMI) following a roadshow with the president of CMI's Engine business.

Potter commented, "While we note a handful of macro-economic headwinds, our conviction in the thesis remains unshaken: we think bears over-play market share concerns in the North American truck market, and we still think growth in China and elsewhere will eventually overshadow these concerns. CMI also seems slightly more willing to explore M&A - at least relative to a few years ago - and this willingness could eventually reignite investor interest in the name, in our view. CMI's valuation (12x FY16 EPS) is also reasonable vs. historical norms. See pages 2-8 for detailed notes from our meetings with management."

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 $137.85 yesterday.

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