Diesel and natural gas engines maker Cummins Inc. (CMI) on Monday saw its shares upgraded by analysts at Jefferies & Co.
The firm boosted its rating on CMI to “Buy” with a $115 price target, suggesting an 18% upside to the stock’s Friday closing price of $97.60.
A Jefferies analyst commented, “We upgrade CMI to BUY as we believe a disconnect has developed between valuation and CMI’s long-term prospects, as an improved cost structure, increasing component value, and JV contributions are set to drive CMI toward its 2015 sales, margin, and EPS targets.”
Cummins shares fell $1.02, or -1%, in premarket trading Monday.
The Bottom Line
Shares of Cummins Inc. (CMI) have a 1.64% dividend yield, based on Friday’s closing stock price of $97.60. The stock has technical support in the $85-$90 price area. If the shares can firm up, we see overhead resistance around the $100-$103 price levels.
Cummins Inc. (CMI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.