Early on Monday, analysts at Goldman Sachs upgraded diesel engines maker Cummins Inc. (CMI) ahead of a new and upcoming $1 billion product cycle.
The analysts upgraded CMI from “Buy” to “Conviction Buy” with a price target of $144. This target suggests a 28% upside to Friday’s closing price of $112.79.
Goldman Sachs cited a few factors as the reason for the upgrade. For one, the new $1 billion product cycle has the potential to add $1 EPS upside to current estimates. Secondly, the global trucking business is seen to be in the cyclical recovery stage of its industry. And third, the current trucking and off-highway engine markets have the potential for tremendous upside.
Cummins shares were up $2.31, or +2.05%, during pre-market trading on Monday. The stock is down -7.38% over the past year.
The Bottom Line
Shares of Cummins Inc. (CMI) have a dividend yield of 1.77% based on Friday’s closing price of $112.79 and the company’s annualized dividend payout of $2.00 per share.
Cummins Inc. (CMI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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