Bank of America has revised its price target for Paccar Inc. (PCAR, Financial), reducing it from $115 to $99 while maintaining a Buy rating on the stock. This adjustment comes as the firm anticipates difficulties in the Machinery, Engineering & Construction (E&C), and Waste sectors ahead of upcoming earnings reports.
The investment bank describes the current environment as a potential "lose-lose" scenario for companies within these sectors. It suggests that firms may either reduce their guidance due to prevailing uncertainties or risk appearing disconnected from current market conditions if they do not. Consequently, BofA is gradually shifting its focus away from original equipment manufacturers towards service-oriented areas such as aggregates, rentals, and waste management.
Overall, while maintaining a positive outlook on Paccar's shares, the bank's cautious stance reflects broader sector challenges that could influence investor sentiment and future performance of the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for PACCAR Inc (PCAR, Financial) is $103.59 with a high estimate of $134.00 and a low estimate of $78.00. The average target implies an upside of 20.35% from the current price of $86.08. More detailed estimate data can be found on the PACCAR Inc (PCAR) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, PACCAR Inc's (PCAR, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for PACCAR Inc (PCAR, Financial) in one year is $82.88, suggesting a downside of 3.72% from the current price of $86.08. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the PACCAR Inc (PCAR) Summary page.
