Paccar upgraded to Neutral at BofA on stronger than appreciated earnings power

As previously reported, BofA upgraded Paccar to Neutral from Underperform with a price target of $97, up from $84. While the firm expects the truck production cycle to turn down in 2024, this is largely captured in expectations with consensus forecasts calling for EPS to be down 15% in 2024. The firm sees evidence this downturn is likely to be contained to one year, adding that Paccar’s earnings power is “stronger than we appreciated.”