Atmus Filtration initiated with a Buy at BofA following Cummins spinoff

As previously reported, BofA analyst Andrew Obin initiated coverage of Atmus Filtration (ATMU) with a Buy rating and $25 price target. Atmus, which was spun off by Cummins (CMI) in May, is a leading manufacturer of commercial vehicle filtration products that will “further build on its strengths” as a standalone company, BofA tells investors. The firm forecasts right-sizing costs following the spin to drive incremental EBITDA margins in 2022-25 of 30%-plus. Atmus plans to use its free cash flow to “transform and diversify into adjacent non-vehicle filtration markets,” the firm added.