Paccar downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Paccar (PCAR) to Neutral from Overweight with a price target of $90, down from $105. The firm is now long confident that Paccar’s gross margin will bottom in Q2, saying the freight and truck market downturn “continues to unfold.” Considering JPMorgan’s view of 60% chance of a U.S. recession in the second half of 2025 and upcoming truck price increases in response to the existing tariffs, there could be further demand and volume degradation in the coming quarters, the analyst tells investors in a research note.