Cummins price target raised to $375 from $345 at Citi

Citi raised the firm’s price target on Cummins to $375 from $345 and keeps a Buy rating on the shares. The analyst updated machinery models heading into Q3 earnings. Estimates have come down as conditions across most machinery markets “have cooled” in the second half of 2024, the analyst tells investors in a research note. Citi anticipates the second half of the year to be characterized by production cuts and companies taking a “wait-and-see approach” heading into 2025, awaiting more clarity on Federal Reserve policy, a U.S. election result and implications of China stimulus. Oshkosh (OSK) and CNH Industrial (CNH) remain Citi’s top two picks, as it believes a combination of “depressed valuations” and its conviction in earnings growth in 2025 “make for a compelling setup.”