UBS Maintains a 'Buy' on Cummins (CMI); Lowers PT & Estimates Post Q3, But Still See Upside in Shares

UBS maintains a 'Buy' on Cummins (NYSE: CMI) price target lowered from $140.00 to $120.00.

UBS analyst says, "Sales rose 36% YoY to $4.6B (in line with consensus) as all segments grew double-digits YoY (although Engine, Power Generation and Components missed our estimates, while Distribution was in line). EBIT margin rose 60bps YoY to 13.8% (UBSe: 15.1%). JV income rose 16% YoY to $102M and represented 16% of EBIT. We calculate taxes contributed ~$0.16 (3Q tax rate of 2.5%, UBSe: 30%)...Factoring in 3Q results and weaker near-term India/China demand, we are lowering 2011E, 2012E & 2013E by $0.50 each to $8.50, $9.75 & $11.00, respectively."

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

Shares of Cummins closed at $93.81 yesterday.

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