Assessing Cummins: Insights From 10 Financial Analysts

Cummins CMI has been analyzed by 10 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $382.7, a high estimate of $451.00, and a low estimate of $240.00. This current average has decreased by 4.52% from the previous average price target of $400.80.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Cummins is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Steven Fisher |UBS |Lowers |Sell | $240.00|$400.00 | |Kyle Menges |Citigroup |Lowers |Buy | $360.00|$430.00 | |Steven Fisher |UBS |Lowers |Buy | $400.00|$432.00 | |Tami Zakaria |JP Morgan |Lowers |Neutral | $375.00|$420.00 | |David Raso |Evercore ISI Group |Raises |Outperform | $451.00|$408.00 | |David Leiker |Baird |Raises |Neutral | $407.00|$395.00 | |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 |

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Cummins. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Cummins compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Cummins's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Cummins's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Cummins analyst ratings.

About Cummins

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: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Negative Revenue Trend: Examining Cummins's financials over 3M reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -1.12% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the 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 4.95%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Cummins's ROE stands out, surpassing industry averages. With an impressive ROE of 4.06%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Cummins's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.31% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 0.74, Cummins adopts a prudent financial strategy, indicating a balanced approach to debt management.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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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This article was generated by Benzinga's automated content engine and reviewed by an editor.