UBS Maintains a 'Buy' on Cummins (CMI); Raising Estimates After Another Impressive Qtr

UBS maintains a 'Buy' on Cummins (NYSE: CMI), raises price target from $135 to $140.

UBS analyst says, "Adjusted EPS excludes a $0.19/sh gain from sale of exhaust business. Sales rose 45% YoY to a record $4.6B (7% above UBSe) with strength in all segments as Engine provided most upside vs. our model...CMI raised its 2011 sales forecast to $18B, from $17B (vs. consensus of $17.3B), and also raised its EBIT margin guidance to 14.5%, up from 14.0%...Reflecting the 2Q beat and a still improving outlook, we are raising our 2011E, 2012E and 2013E to $9.00, $10.25 and $11.50, from $7.75, $9.30 and $10.60."

For more ratings news on Cummins click here and for the rating history of Cummins click here.

Shares of Cummins closed at $110.82 yesterday.

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