Cummins CMI has been analyzed by 10 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 1 | 5 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 2 | 0 | 0 |
| 2M Ago | 1 | 0 | 2 | 0 | 0 |
| 3M Ago | 2 | 1 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $413.1, a high estimate of $435.00, and a low estimate of $358.00. This current average has increased by 10.43% from the previous average price target of $374.10.
Understanding Analyst Ratings: A Comprehensive Breakdown
The perception of Cummins by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Adam Seiden | Barclays | Raises | Equal-Weight | $381.00 | $310.00 |
| Jamie Cook | Truist Securities | Raises | Hold | $425.00 | $424.00 |
| Kyle Menges | Citigroup | Lowers | Buy | $430.00 | $435.00 |
| Michael Feniger | B of A Securities | Raises | Neutral | $358.00 | $354.00 |
| Jamie Cook | Truist Securities | Raises | Hold | $424.00 | $369.00 |
| Kyle Menges | Citigroup | Raises | Buy | $435.00 | $415.00 |
| Tami Zakaria | JP Morgan | Raises | Neutral | $420.00 | $355.00 |
| Stephen Volkmann | Jefferies | Raises | Buy | $435.00 | $410.00 |
| Kyle Menges | Citigroup | Raises | Buy | $415.00 | $375.00 |
| David Raso | Evercore ISI Group | Raises | Outperform | $408.00 | $294.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cummins. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Cummins compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Cummins's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Cummins's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Cummins analyst ratings.
Delving into Cummins's Background
Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway machinery, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of carbon emissions, Cummins has maintained its leadership position in the industry.
Financial Milestones: Cummins's Journey
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Cummins displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 0.3%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Net Margin: Cummins's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 9.57%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.14%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Cummins's ROA stands out, surpassing industry averages. With an impressive ROA of 2.55%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Cummins's debt-to-equity ratio is below the industry average at 0.79, reflecting a lower dependency on debt financing and a more conservative financial approach.
Understanding the Relevance of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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