Cummins price target lowered to $425 from $436 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Cummins (CMI) to $425 from $436 and keeps an Overweight rating on the shares. After “another better than expected quarter and guide,” the market will continue to debate the North American Truck cycle, but the firm views the company’s outlook as “conservative with ample runway for margin expansion and top line growth,” says the analyst, who adds that Cummins remains a “Top Pick.” The conservative outlook sets Cummins up for “another year of beat and raises,” the analyst argues.