Paccar (PCAR, Financial) has received an upgrade from Vertical Research's analyst Jeffrey Kauffman, moving from a Hold to a Buy recommendation. This change is accompanied by a new price target set at $120. The update signifies increased confidence in Paccar's performance and future prospects, reflecting a positive outlook for potential investors.
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 $100.72 with a high estimate of $122.34 and a low estimate of $81.00. The average target implies an upside of 2.17% from the current price of $98.58. 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 $81.44, suggesting a downside of 17.39% from the current price of $98.58. 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.
PCAR Key Business Developments
Release Date: July 22, 2025
- Revenue: $7.5 billion for the second quarter.
- Adjusted Net Income: $724 million for the second quarter.
- PACCAR Parts Revenue: Record quarterly revenues of $1.72 billion.
- PACCAR Parts Pretax Income: $417 million for the second quarter.
- PACCAR Financial Pretax Income: $123 million for the second quarter, up from $111 million a year earlier.
- Truck Deliveries: 39,300 trucks delivered in the second quarter; anticipated 32,000 to 33,000 in the third quarter.
- Gross Margins: 13.9% for Truck, Parts, and other segments in the second quarter.
- PACCAR Parts Gross Margin: 30% for the second quarter.
- Capital Investments: Planned range of $750 million to $800 million for the year.
- R&D Investments: Planned range of $450 million to $480 million for the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- PACCAR Inc (PCAR, Financial) achieved record revenues at PACCAR Parts, with quarterly revenues of $1.72 billion and excellent quarterly pretax income of $417 million.
- PACCAR Financial Services reported a robust pretax income of $123 million, reflecting strong credit quality and improving used truck results.
- The company is planning significant capital investments in the range of $750 million to $800 million and R&D investments between $450 million to $480 million, focusing on next-generation clean diesel and alternative powertrains.
- PACCAR Inc (PCAR) delivered 39,300 trucks during the second quarter and anticipates delivering around 32,000 to 33,000 in the third quarter, reflecting strong operational performance.
- The company is optimistic about the North American market strengthening as tariff policies become certain and customers anticipate the 2027 NOx emission standards.
Negative Points
- The North American truck market is affected by general economic conditions, a soft truckload market, and tariff and EPA 27 policy uncertainty.
- PACCAR Inc (PCAR) faces challenges in forecasting third quarter margins due to the uncertain tariff structure, with potential margins around 13%.
- The South American above 16-tonne truck market is expected to be lower than anticipated, primarily due to high interest rates in Brazil affecting consumer confidence.
- The company is experiencing variability in pricing due to the impact of tariffs, which could increase in the third quarter, affecting cost versus price dynamics.
- PACCAR Inc (PCAR) is dealing with a flat parts market, which poses challenges for growth despite achieving record revenues in the parts division.
