Jefferies Cuts PT on Cummins (CMI) to $126 Following Q2 Data; Boosts Targets on Increased Outlook
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Price: $587.68 -0.57%
Rating Summary:
15 Buy, 20 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
15 Buy, 20 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies lowers its price target on Cummins, Inc. (NYSE: CMI) from $130 to $126 following second-quarter earnings results yesterday.
Cummins reports earnings of $2.41 per share on revs of $4.64 billion, both beating Street estimates. Cummins also increased its outlook for FY11.
Jefferies notes management said China revenue will show moderate growth in the second half. On that, Jefferies says, "[management] maintained its forecast for 25% total China revenue growth for the year and highlighted other China opportunities going forward."
On raised guidance, "Assumptions include Engine revenue growth of 45%, Distribution growth of 30%, Components growth of 35%, while PowerGen growth remains 20%. The forecast also incorporates incremental margins of ~21%, as cost headwinds have largely been offset by pricing and efficiency."
Jefferies boosted its fiscal 2011 EPS estimate from $8.50 to $8.90 and fiscal 2012 estimate from $10.50 to $10.75.
For more analyst calls on Cummins, click here. For a ratings history, click here.
Cummins is 1.9 percent lower on Wednesday's session.
Cummins reports earnings of $2.41 per share on revs of $4.64 billion, both beating Street estimates. Cummins also increased its outlook for FY11.
Jefferies notes management said China revenue will show moderate growth in the second half. On that, Jefferies says, "[management] maintained its forecast for 25% total China revenue growth for the year and highlighted other China opportunities going forward."
On raised guidance, "Assumptions include Engine revenue growth of 45%, Distribution growth of 30%, Components growth of 35%, while PowerGen growth remains 20%. The forecast also incorporates incremental margins of ~21%, as cost headwinds have largely been offset by pricing and efficiency."
Jefferies boosted its fiscal 2011 EPS estimate from $8.50 to $8.90 and fiscal 2012 estimate from $10.50 to $10.75.
For more analyst calls on Cummins, click here. For a ratings history, click here.
Cummins is 1.9 percent lower on Wednesday's session.
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