Cummins price target raised to $273 from $243 at BofA

BofA raised the firm’s price target on Cummins to $273 from $243 and keeps an Underperform rating on the shares after the company reported an inline Q1, maintained its FY24 sales outlook at down 2%-5% and slightly raised EBITDA margin forecasts by 10 basis points. The firm updated its estimates post Q1 and thinks a higher multiple is warranted given strength in Power Systems and likely pre-buy support for trucks, but keeps the stock at Underperform as it struggles to see valuation upside above mid-cycle territory given concerns on the truck cycle and less margin upside “torque” than peers.