Summary:
- Cummins (CMI, Financial) stock rises 2.8% following an upgrade from Goldman Sachs to a "Buy" with a $431 price target.
- Wall Street analysts predict an 8.21% upside for Cummins based on average price targets.
- GuruFocus estimates indicate a potential 8.69% downside from the current price.
Cummins Inc. (CMI) recently saw its shares climb by 2.8%, driven by an upgrade from Goldman Sachs. The investment bank changed its rating to "Buy," setting a new price target at $431. This optimistic outlook stems from expected profitability in Cummins' Power Systems segment, thanks to a new pricing strategy designed to improve margins and enhance the production capacity for large generators, notably those serving data centers.
Wall Street Analysts' Forecast
According to projections from 16 analysts, the one-year average price target for Cummins Inc. stands at $353.03. This includes a high estimate of $460.00 and a low estimate of $260.00. The average target suggests an upside potential of 8.21% from the current share price of $326.26. For more detailed insights, visit the Cummins Inc (CMI, Financial) Forecast page.
Average Brokerage Recommendations
The consensus recommendation from 24 brokerage firms positions Cummins Inc. at an average rating of 2.5, which equates to an "Outperform" status. It's important to note that the rating scale varies from 1 to 5, with 1 meaning Strong Buy and 5 indicating a Sell recommendation.
GF Value Estimation
GuruFocus provides an estimated GF Value for Cummins Inc. of $297.90 over the next year. This projection suggests a potential downside of 8.69% from the current price of $326.26. The GF Value represents GuruFocus' fair value estimate, derived from the historical trading multiples and growth trends of the company, along with future business performance predictions. More comprehensive data is available on the Cummins Inc (CMI, Financial) Summary page.
