From Financial Modeling Prep: 2025-03-18 12:43:00

UBS analysts have lowered Cummins’ price target to $400 from $432, citing concerns over the North American truck market recovery. Despite cutting 2025 and 2026 EPS estimates by 6% and 7%, UBS still sees earnings potential in Cummins due to margin expansion and growth in the Power Generation segment.

Industry order weakness in February has raised uncertainty in the freight and trucking sectors, leading to downward revisions in earnings estimates for Cummins’ Engine and Components segments. Ongoing policy ambiguity could further dampen demand, according to UBS analysts.

Cummins has implemented margin improvement initiatives such as lower R&D expenses, price increases in Power Gen, and cost-cutting efforts. These efforts could be offset by higher warranty provisions for new engines and inflationary pressures from tariffs. UBS remains optimistic about Cummins’ long-term growth potential.

Despite challenges in the trucking sector, UBS believes Cummins’ diversification and operational efficiencies position it well for future growth. The firm maintains a Buy rating on Cummins, emphasizing its resilience and growth prospects in the long run.



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