Ratings for Cummins (NYSE:CMI) were provided by 7 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 0 | 4 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 1 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 2 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $438.71, a high estimate of $500.00, and a low estimate of $380.00. This current average reflects an increase of 14.05% from the previous average price target of $384.67.
Exploring Analyst Ratings: An In-Depth Overview
A clear picture of Cummins's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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 |
|---|---|---|---|---|---|
| Tami Zakaria | JP Morgan | Raises | Neutral | $460.00 | $400.00 |
| Jamie Cook | Truist Securities | Raises | Hold | $434.00 | $380.00 |
| Kyle Menges | Citigroup | Raises | Buy | $485.00 | $425.00 |
| Rob Wertheimer | Melius Research | Announces | Buy | $500.00 | - |
| Jamie Cook | Truist Securities | Raises | Hold | $380.00 | $342.00 |
| Kyle Menges | Citigroup | Raises | Buy | $425.00 | $380.00 |
| Adam Seiden | Barclays | Raises | Equal-Weight | $387.00 | $381.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Cummins. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Cummins compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Cummins's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Cummins's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Cummins analyst ratings.
Delving into Cummins's Background
Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of the world. Much of Cummins' foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins' business model is unique as it competes with many of its heavy-duty truck manufacturer customers, which also make their own engines.
Cummins's Economic Impact: An Analysis
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Challenges: Cummins's revenue growth over 3M faced difficulties. As of 30 June, 2025, the company experienced a decline of approximately -1.74%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.
Net Margin: Cummins's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.3%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Cummins's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.84%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Cummins's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.67%, the company showcases efficient use of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.74.
The Significance of Analyst Ratings Explained
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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