UPDATE: Sterne Agee Reduces PT to $124 on Cummins as Growth Expectations Reset

Jefferies reiterated its Buy rating on Cummins

and reduced its price target from $136 to $124. Jefferies noted, "CMI's revision of its outlook from +10% to flat revenue growth for 2012 should be analyzed more for its read-through to other companies than a commentary on the long-term prospects of CMI itself, which raised its dividend 25% in the same announcement. We view this as more of a barometer of the lack of growth relative to expectations in the BRIC countries for multi-national industrial companies." Cummins closed at $86.91 on Monday.