Diesel engine maker Cummins Inc. (CMI) on Tuesday saw its coverage initiated with a “Neutral” rating by analysts at Piper Jaffray.
The firm also set a $129 price target on CMI, suggesting a 12% upside to the stock’s Monday closing price of $115.54.
A Piper Jaffray analyst commented, “Though many other companies can make engines, we believe that few, if any, can imitate CMI’s suite of technologies, expansive distribution network, and reputable brand. We believe that these advantages will allow CMI to successfully defend its market share in the coming quarters/years. These advantages, combined with a steadily improving North American truck market, result in limited downside in CMI shares, in our view. However, with Chinese demand sputtering and CMI already trading near its all-time high, we initiate at Neutral.”
Cummins shares posted modest gains in premarket trading Tuesday.
The Bottom Line
Shares of Cummins Inc. (CMI) have a 1.38% dividend yield, based on last night’s closing stock price of $115.54. The stock has technical support in the $104-$109 price area. If the shares can firm up, we see overhead resistance around the $120-$122 price levels.
Cummins Inc. (CMI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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