Citi Raises Cummins (CMI) Price Target to $375: What It Means for Investors
Citi, a leading financial firm, has upgraded Cummins (NYSE:CMI) to a Buy rating and increased its price target to $375 from $345. This adjustment comes as a result of updated earnings per share (EPS) estimates for the next few years, driven by changes in market projections.
The firm's latest model changes have led to an upward revision of the 2024 EPS estimate for Cummins to $19.65, indicating a positive outlook for the North American On-Highway market. However, the 2025 EPS estimate has been slightly reduced to $21.65 due to lower expectations in the same market segment.
Looking ahead to 2026, Citi's model predicts a significant increase in Cummins' EPS to $26.40, supported by improved performance in Power Systems, joint venture earnings, and contributions from Accelera. This adjustment reflects Citi's confidence in Cummins' growth potential across its various business segments.
In recent news, Cummins reported strong Q2 results for 2024, with sales reaching $8.8 billion and EBITDA rising to $1.35 billion. Following these results, Baird raised its price target for Cummins shares to $330, while Citi reaffirmed its Buy rating on the stock, emphasizing its positive outlook for the company through 2025.
Cummins' strategic partnerships, strong financial performance, and commitment to shareholder returns make it a favorable investment option. Despite challenges in the North American heavy-duty truck market, Cummins remains optimistic about its future prospects, supported by strong demand in other markets.
From an investment perspective, Cummins' market cap, revenue growth, dividend history, and stock performance indicate a solid financial position and growth potential. Investors can benefit from Cummins' consistent performance and market presence, making it a promising opportunity for long-term investment.
In conclusion, Citi's positive outlook on Cummins reflects the company's strong fundamentals and growth prospects. Investors can consider Cummins as a valuable addition to their investment portfolio, given its solid financial performance and optimistic future outlook.