Deutsche Bank issued a catalyst call buy idea on Cummins ( NYSE: CMI ) on Wednesday.
Analyst Nicole DeBlase said per the firm's pre-earnings conversation with Cummins ( CMI ) management, it was clear that a number of customers are increasing their heavy-duty truck build rates , largely due to the easing of supply chain constraints. The customers ramping up builds are noted to be more than just PACCAR
"As such, we see the potential for management to raise its full year Engine revenue guidance from +8% Y/Y to +15% Y/Y, and this is one of the key inputs to the model. Moreover, we think interest in CMI could increase throughout the rest of the year, as investors seek out companies more leveraged to the China reopening/stimulus trade - and CMI resides solidly in this category."
Shares of Cummins ( CMI ) rose 0.50% premarket to $202.18 vs. the 52-week trading range of $184.35 to $247.48.
Cummins ( CMI ) is expected to post its earnings report during the first week of August. See consensus estimates and the recent earnings history.
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Cummins is a catalyst call buy at Deutsche Bank