PACCAR (PCAR) PT Lowered to $120 at BofA Securities

BofA Securities analyst Ross Gilardi lowered the price target on PACCAR (NASDAQ: PCAR) to $120.00 (from $121.50) while maintaining a Buy rating.

The analyst comments "PCAR’s gross margin appears to be bottoming out We came away from PCAR’s Q4 results with more conviction that gross margin is in a bottoming out process. After missing expectations in Q2 & Q3, Q4 gross margin was in line with guidance (15.9% vs 15.5-16%). The Q1 guide (15.5-16%) & 2025 commentary suggests Q4-Q1 likely marks the trough. To be fair, EPS of $1.66 (-39% YoY) was just in line with BofA ($1.65) despite unit deliveries coming in higher (43.9k vs 42k), pricing risk remains near-term, and (public) truck capex budgets (so far) are flattish. Bigger picture, we believe PCAR’s mix is underrated in terms of providing resiliency (Parts is now 37% of Q4 pre-tax profit) and progress on inventories (dealer, OEM) is an encouraging sign."

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