Cummins (CMI) Estimates, PT Lifted at Piper Jaffray on 'Strong' Q1

Piper Jaffray analyst Alexander E. Potter reiterated an Overweight rating and boosted estimates and his price target on Cummins (NYSE: CMI) to $167.00 (from $162.50) following strong Q1 results as higher volume boosted volume which shoudl continue.

Potter said, :Higher volume in the North American and Chinese truck markets drove sizable operating leverage in the quarter - especially in the Engine and Components segments - and we believe this trend will continue in the coming quarters. While CMI did acknowledge strong truck volume YTD, management (prudently) is leaving room for upside in the forecast for the rest of the year. However, if truck markets continue growing, and if volume in the Power Generation business stabilizes, we think there is ample reason to expect more beat/raise quarters in 2014."

FY 2014 EPS goes from $8.78 to $8.83 and FY 2015 EPS goes from $10.84 to $11.13.

For an analyst ratings summary and ratings history on Cummins click here. For more ratings news on Cummins click here.

Shares of Cummins closed at $150.81 yesterday.

You May Also Be Interested In

• Deutsche Bank Downgrades L'Oreal SA (OR:FP) (LRLCY) to Sell
• Domino's Pizza (DPZ) PT Lowered to $325 at RBC Capital
• CLSA Starts Vedanta Aluminium Metal (VAML:IN) at Outperform (2)