Zacks Investment Research upgraded shares of Cummins Inc. (CMI) from UNDERPERFORM to NEUTRAL on February 12, 2013, with a target price of $125.00.
Cummins expects revenues in full year 2013 to be flat to down 5%. The company's cash flow has declined, which might hinder its growth strategies. However, Cummins is set to benefit from fuel economy improvements, new emission standards and increased prices. Despite posting a 21.9% fall in earnings per share to $2.00 in the fourth quarter of 2012, EPS exceeded the Zacks Consensus Estimate by a considerable margin of $0.26. Revenues of $4.3 billion were also higher than the Zacks Consensus Estimate of $4.1 billion. As such, we have upgraded the recommendation to Neutral from Underperform and set a target price of $125.00.
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