2023-04-16 04:07:54 ET
Summary
- The company designs, produces, and distributes a diverse array of power products, primarily for commercial vehicles.
- Demand in China fell substantially in 2022, with the risk that this could continue going forward due to changes within the country.
- Economic conditions could result in a decline in growth during 2023 as the requirement for transportation services falls.
- Cummins is showing opportunity for outperformance with its investment in Hydrogen and its acquisition of Meritor.
- Financials are attractive but not relative to other manufacturers. Our valuation suggests an upside of 3-11%, which does not compensate for risk.
For further details see:
Cummins: Scope For Long-Term Upside, But Not At This Price