Bank of America (BofA) has adjusted its outlook for Cummins (CMI, Financial), reducing the price target from $349 to $313 while maintaining a Neutral rating on the stock. This move reflects concerns about the company's upcoming earnings within the Machinery, Engineering & Construction (E&C), and Waste sectors. BofA analysts highlight a potential "lose-lose" scenario, where firms might either cut their earnings guidance due to market uncertainties or risk seeming disconnected from current industry realities.
In response to these dynamics, BofA is revising price targets across the sector and shifting focus from original equipment manufacturers towards service-oriented businesses like aggregates, rentals, and waste management. This strategic pivot underscores the increasing importance of adaptability in navigating a volatile economic landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Cummins Inc (CMI, Financial) is $354.03 with a high estimate of $460.00 and a low estimate of $240.00. The average target implies an upside of 30.14% from the current price of $272.04. More detailed estimate data can be found on the Cummins Inc (CMI) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, Cummins Inc's (CMI, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" 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 Cummins Inc (CMI, Financial) in one year is $303.29, suggesting a upside of 11.49% from the current price of $272.04. 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 Cummins Inc (CMI) Summary page.
