- Despite a meaningful increase to management's forecast of truck volumes in 2021, the Street was more focused on the apparent lack of margin leverage compared to past cycles.
- PACCAR management believes that there's still time for margins to improve with volumes, but the Street is looking at 2022 as the next peak for the truck cycle.
- PACCAR continues to see higher attach rates for its engines, driving parts growth, and will be launching six new electric trucks this year.
- I expect EPS to exceed $7 in 2022 and I believe there's upside to $105-$110, but downside in the next downturn could be in the $70's.
For further details see:
The Market Already Anticipates PACCAR's Recovery