Bernstein Upgrades PACCAR To Outperform, Sees 16% Upside

Bernstein analyst Chad Dillard upgraded PACCAR Inc PCAR to Outperform from Market Perform and raised the price target to $98 (an upside of 16%) from $94.
Dillard says concerns about the end of the machinery cycle in 2022 are overdone; he adds that the market does not fully appreciate the pricing opportunity, which will drive $1.07 of EPS growth in 2022.
With relative valuation at historically low levels ahead of schedule, Dillard believes estimates for 2022 and 2023 are too low, as PACCAR is set to earn $7.66 in 2022 and $8.97 in 2023 are 13% and 17% above the Street, respectively.
Price Action: PCAR shares are trading higher by 1.36% at $84.51 on the last check Wednesday.