Zacks Investment Research downgraded shares of Cummins Inc. (CMI) from NEUTRAL to UNDERPERFORM on November 22, 2012, with a target price of $89.00.
Cummins has been hit badly by the weak macroeconomic environment across the world. As a result, the company saw a 19.1% fall in adjusted earnings per share to $1.78 in the most recent quarter, missing the Zacks Consensus Estimate by $0.06 per share. Revenues of $4.1 billion dipped 11% from the prior year, also lagging the Zacks Consensus Estimate of $4.2 billion. Further, the company expects lower revenues of $17.0 billion for 2012, compared to the previous guidance of $18.0 billion and lower EBIT margin of 13.5% versus the previous estimate of 14.25%-14.75%. These factors have led us to downgrade our recommendation on the stock to Underperform from Neutral and set a target price of $89.00.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Cummins Inc. (CMI),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment