Global technology firm Paccar Inc. (PCAR) has partnered with transportation and logistics provider FedEx (FDX) and California-based Aurora, an autonomous driving technology company, for the launch of a commercial pilot of autonomous trucks in line-haul trucking operations.
Under the agreement, Paccar’s autonomously enabled trucks with Aurora’s self-driving technology are to haul FedEx loads between Dallas and Houston along the I-45 corridor.
Headquartered in Washington, Paccar designs and produces heavy, medium and light-duty commercial trucks. Tennessee-based FedEx offers transportation, Ecommerce and business services across the world. (See Paccar stock chart on TipRanks)
The Vice-President of Advanced Technology and Innovation at FedEx, Rebecca Yeung, said, “This is an exciting, industry-first collaboration that will work towards enhancing the logistics industry through safer, more efficient transportation of goods.”
Paccar and Aurora signed an agreement in January to develop, trial and sell autonomous Kenworth and Peterbilt trucks. As per the terms of the agreement, Paccar’s autonomous vehicle platform has been integrated with the Aurora Driver to boost the operational efficiency and safety of Paccar’s customers.
The Chief Technology Officer at Paccar, John Rich, said, “This new commercial pilot collaboration demonstrates the excellent progress that Paccar and Aurora are making in our strategic alliance.”
Two months ago, Cowen & Co. analyst Matt Elkott maintained a Hold rating on Paccar with a price target of $89 (12.1% upside potential). The analyst expects the company to report earnings per share (EPS) of $1.42 in the third quarter.
Overall, the stock has a Hold consensus rating based on 1 Buy and 4 Holds. The average Paccar price target of $97.50 implies 22.8% upside potential. Shares have lost nearly 13% over the past six months.
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