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Research Alert: CFRA Upgrades View On Shares Of Cummins Inc. To Buy From Hold

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target to $850 from $600 following CMI's Q1 earnings print, valuing shares at 25.7x our 2027 EPS view of $33.09 (up from $30.00; 2026 EPS forecast revised to $27.51 from $26.47), above the company's historical multiple average given profitable exposure to power generation markets that we see being a multi-year structural tailwind. Q1 results were supported by CMI's power generation business, which is being driven by robust global demand, particularly from data centers. This growth is helping to offset a weaker, though improving, environment in the on-highway truck markets, which appear to be recovering from a cyclical trough sooner than previously anticipated. In parallel, CMI is undertaking strategic actions to improve the growth trajectory of its new power segment by divesting from less promising areas. Q1 performance contributed to an increase in the full-year forecast for both revenue and profitability.

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