Cummins price target raised to $354 from $301 at BofA

BofA raised the firm’s price target on Cummins (CMI) to $354 from $301 and keeps an Underperform rating on the shares. The company’s “strong” Q3 represents “one of the few ‘beats & raises’ in Machinery,” notes the firm, which raised estimate following the Q3 results and believes a higher multiple is warranted given the strength in Power Systems. However, the firm adds that it struggles to see valuation upside above mid-cycle territory and believes the market is starting to value significant recovery in 2025 to peak earnings, leading it to reiterate an Underperform rating.