Citi Raises Cummins (CMI) PT as Machinery Demand Outlook Improves

Group 1: Company Overview - Cummins Inc. is an American multinational corporation that designs, manufactures, and distributes diesel engines, electric vehicle components, and power generation products [4] - The company's main products in the hydrogen sector include hydrogen fuel cell powertrains for commercial vehicles, heavy-duty hydrogen engines, and large-scale electrolyzers [4] Group 2: Market Outlook and Analyst Ratings - On December 11, Citi raised the price target for Cummins Inc. stock to $580 from $530 while maintaining a Buy recommendation, reflecting a positive outlook for the machinery sector, particularly in construction and mining [1] - Barclays reaffirmed a Hold rating on Cummins stock with a price target of $515 on the same day [2] - UBS upgraded Cummins stock rating to Neutral from Sell and increased the price target to $500 from $350, based on expectations that the truck market cycle will reach its lowest point in 2026 [2] Group 3: Performance Expectations - UBS analysts anticipate possible lower results than expected for Cummins' engine and parts businesses in the first half of 2026 due to falling truck market conditions and pressure on profit margins [3] - However, these challenges may be offset by better-than-expected performance in power generation [3]