Jefferies announced that they have downgraded diesel engine manufacturer, Cummins Inc.(CMI) to a “Hold” on Friday.
The firm has reduced their rating for CMI from a “Buy” to a “Hold,” and has given the company a $105 price target. This price target suggests a 5% decrease from the stock’s current price of $112.44.
A Jefferies analyst noted, “we are downgrading the shares of CMI from Buy to Hold based on valuation. CMI shares are up 30% from Oct lows and are just 10% below all time highs. The shares are trading towards the upper end of the historical ranges based on 2013 Consensus, which already calls for a healthy re-acceleration of growth from 2H12 levels. Longer term, we view CMI as a core holding.”
Cummins shares were down -$1.29, or -1.15% during premarket trading Friday. The stock has increased 20% in the past year.
The Bottom Line
Shares of Cummins Inc. (CMI) have a 1.78% dividend yield, based on last night’s closing stock price of $112.44. The stock has technical support in the $104-$105 priced area. If the shares can firm up, we see overhead resistance around the $115-$118 price levels.
Cummins Inc.(CMI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.