PACCAR To Generate Over 5% Dividend Yield In 2026, Analyst Sees New Peak EPS

Group 1 - BofA Securities analyst Michael Feniger upgraded PACCAR Inc. from Neutral to Buy, raising the price forecast to $121.50 from $116 [1] - PACCAR stock underperformed in 2024 due to pricing and production concerns, but is expected to see growth in the truck market in 2025 and 2026 [1][2] - The company is projected to report a new peak EPS of $10.25 in 2026, which is $1 above consensus, as freight conditions improve [3] Group 2 - The truck market is anticipated to balance first among machinery markets due to pre-emptive purchases ahead of emissions changes and stabilizing used truck inventories [2] - Third-party forecasts predict truck builds will decline by 3% in 2025 before rising by 11% to 353.5k units in 2026 [3] - PACCAR's dividend is projected to yield over 5% in 2026, the highest in the sector, providing an attractive return amid rising 10-year yields [4]