PACCAR Expects Truck Deliveries to Decline in Q3 on Semiconductor Shortage

PACCAR Inc. (PCAR) expects its truck deliveries in the third quarter of 2021 to decline due to the shortage of semiconductors on a global level. The company anticipates delivering approximately 33,000 vehicles, as compared to 40,100 vehicles in the second quarter of 2021.

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PACCAR is a global technology company, which designs and manufactures light, medium, and heavy-duty commercial trucks. (See Paccar stock chart on TipRanks)

The company expects the shortage and associated production inefficiencies to persist in the fourth quarter of 2021 as well. Nevertheless, PACCAR expects global truck production to strengthen when these issues are solved. “Global demand for the new Kenworth, Peterbilt and DAF trucks is very strong,” the company said.

Two months ago, Cowen & Co. analyst Matt Elkott maintained a Hold rating on the stock with a price target of $89 (upside potential of 13%).

Elkott said, “Our tempered 2H21 production outlook relative to where we believe consensus lies should lead to a stronger 2022 expansion than our initial expectation, which had already been above consensus.”

Overall, the stock has a Hold consensus rating based on 1 Buy and 4 Holds. The average Paccar price target of $97.50 implies 23.8% upside potential. Shares have lost nearly 16% over the past six months.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on PCAR, with 3.9% of investors on TipRanks increasing their exposure to PCAR stock over the past seven days.