The Analyst Verdict: Cummins In The Eyes Of 7 Experts

Loading...
Loading...

7 analysts have expressed a variety of opinions on Cummins CMI over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 0 4 1 0
Last 30D 0 0 1 0 0
1M Ago 0 0 1 0 0
2M Ago 1 0 1 1 0
3M Ago 1 0 1 0 0

Analysts have recently evaluated Cummins and provided 12-month price targets. The average target is $289.86, accompanied by a high estimate of $321.00 and a low estimate of $244.00. Observing a 11.27% increase, the current average has risen from the previous average price target of $260.50.

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive Cummins. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
David Leiker Baird Lowers Neutral $295.00 $298.00
Jerry Revich Goldman Sachs Raises Neutral $306.00 $270.00
Tami Zakaria JP Morgan Raises Underweight $275.00 $245.00
Steven Fisher UBS Raises Buy $321.00 $254.00
Jamie Cook Truist Securities Announces Hold $303.00 -
David Raso Evercore ISI Group Raises In-Line $244.00 $231.00
Timothy Thein Citigroup Raises Buy $285.00 $265.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Cummins. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Cummins compared to the broader market.
  • Price Targets: Delving into movements, analysts provide estimates for the future value of Cummins's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into Cummins's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Cummins analyst ratings.

Unveiling the Story Behind Cummins

Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway equipment, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of carbon emissions, Cummins has maintained its leadership position in the industry.

A Deep Dive into Cummins's Financials

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Positive Revenue Trend: Examining Cummins's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.95% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Cummins's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -16.75% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -14.67%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -4.46%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.81.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst RatingsBZI-AAR
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...