Cummins Target Price Lowered as Wall Street Analysts Adjust Expectations

Wall Street analysts have reduced their average 12-month price objective for Cummins Inc. to $621.48 from $639.76, according to estimates compiled from 16 analysts by FactSet. Individual targets range between $462 and $879 per share. Across 24 covering analysts, the consensus recommendation remains Buy, consisting of 16 Buy ratings, eight Holds, and zero Sell ratings.

The target revision follows recent price objective reductions from several investment banks. Barclays lowered its target to $600 from $675 while keeping an Overweight rating. Truist Financial cut its target to $637 from $779, Wells Fargo decreased its target from $608 to $520, and JPMorgan Chase & Co. reduced its target from $600 to $465 while shifting to a Neutral stance. Conversely, Wall Street Zen upgraded Cummins from Hold to Buy.

The changes arrive after Cummins reported its latest quarterly financial results on Thursday, November 5. The manufacturer posted earnings per share of $8.25, topping the consensus estimate of $8.20 by $0.05. However, revenue of $9.44 billion fell short of the $9.89 billion anticipated by analysts, even as it increased 13.5% from the same period in the prior year.

Company commentary and market reports indicate that expanding artificial intelligence data-center power demand and a solid order backlog offer operational opportunities. At the same time, analysts noted that supply chain limitations, soft conditions across the truck market, and moderated profit margin expectations present continuing challenges for the business.

Cummins also disclosed a quarterly dividend of $2.20 per share, scheduled for payment on Thursday, December 3 to shareholders of record as of Friday, November 20. Institutional ownership represents 83.46% of the company's equity, with several major funds recently adjusting their positions.