NewsCummins "neutral," target price raised
07/28/07 - Credit Suisse
NEW YORK, July 28 (newratings.com) - Analysts at Credit Suisse maintain their "neutral" rating on Cummins Inc (CMI), while raising their estimates for the company. The target price has been raised from $98 to $130.
In a research note published yesterday, the analysts mention that the company has posted stellar 2Q results, with EPS ahead of the consensus. Cummins has raised its EPS guidance for the year from $6.00-$6.50 to $7.15- $7.65, citing improved demand across all the business lines, continued share gains and superior execution. The company’s margins are expected to improve going forward, with the easing of capacity issues and the anticipated divestiture of an unprofitable business, Credit Suisse adds. The EPS estimates for 2007 and 2008 have been raised to $7.80 and $9.25, respectively.