Are Cummins (NYSE:CMI) Shares Worth Your Time and Dime Following Recent BofA Merrill Downgrade?


Cummins (NYSE:CMI) Receives a Downgrade

BofA Merrill has given Cummins (NYSE:CMI) shares a new “Underperform” rating in a recent report published on 1 December. This was a downgrade from the old “Buy” rating.

From a total of 22 analysts covering Cummins (NYSE:CMI) stock, 7 rate it a ”Buy”, 3 a “Sell”, and 18 a ”Hold”. This means that 25% of the ratings are positive. The highest target price is $160 while the lowest target price is $76. The mean of all analyst targets is $109 with a 29.13% above today’s ($92.93) stock price. Cummins was the topic of 22 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank maintained shares on November 11 with “Hold” rating. UBS downgraded shares to “Neutral” rating and $111 target share price in a report from an October 20. Macquarie Research maintained CMI stock in a recent report from October 28 with “Outperform” rating. BMO Capital Markets downgraded the rating on October 6. BMO Capital Markets has a “Market Perform” rating and a $110 price target on shares. Finally, Morgan Stanley downgraded the stock to “Underweight” rating in a report issued on an October 28.

Approximately 6.44M shares of stock traded hands or 153.54% up from the average. Cummins Inc. (NYSE:CMI) has declined 26.87% since April 28, 2015 and is downtrending. It has underperformed by 25.25% the S&P500.

Cummins Inc. is a global diesel engine manufacturer. The company has a market cap of $16.40 billion. The Firm designs, makes, distributes and services diesel and natural gas engines and engine-related component products, including filtration, after treatment, turbochargers, fuel systems, controls systems, air handling systems and electric power generation systems. It has 9.94 P/E ratio. It has four operating divisions: Engine, Distribution, Components and Power Generation.

According to Zacks Investment Research, “Cummins Inc. is one of the leading worldwide designers and manufacturers of diesel engines. The company also produces natural gas engines and engine components and subsystems. Cummins provides power and components for a wide variety of equipment in its key businesses: engine, power generation, and filtration.” Get a free copy of the Zacks research report on Cummins Inc. (CMI)