PACCAR (PCAR) PT Lowered to $107 at BofA Securities
BofA Securities analyst Ross Gilardi lowered the price target on PACCAR (NASDAQ: PCAR) to $107.00 (from $120.00) while maintaining a Neutral rating.
The analyst comments "PCAR reported Q2 adj EPS of $2.13, down 8% YoY, in line with cons. That said, underlying trends underwhelmed, resulting in PCAR shares falling 11% (vs SPX -0.2%): gross margin of 18% (-80bps YoY) was at the low end of the Q2 guide (18-18.5%), parts pre-tax profit margin fell 140bps YoY (first decline since Q320), PCAR guided Q3 gross margin of 17% (down 250bps YoY, vs cons 18.3%). In our view, two things are clear: i) PCAR execution set a high bar: gross margin finally coming under pressure after an incredible stretch (+720bps over 3 years), ii) truck production downturn is underway."