Cummins' West Texas Prime-Power Order Is 'Positive Surprise' for Investors, UBS Says
Cummins' (CMI) newly announced order to supply about two gigawatts of natural gas generation capacity for Circe Energy's West Texas data-center buildout is a "positive surprise" for investors, UBS Securities said Tuesday in a report.The generators are scheduled for delivery from 2026 to 2030 for Circe's phased West Texas AI-infrastructure campus and future deployments across North America, the report said.UBS estimated that at roughly $400,000 per megawatt, the order may total about $800 million, which translates into $1 to $1.50 a share in earnings over the delivery period. Cummins previously indicated prime-power orders were unlikely in the near term, the report said.UBS reiterated its EPS guidance for 2026-28 and maintained its buy rating on Cummins stock with its $850 price target.Price: $723.87, Change: $+23.90, Percent Change: +3.41%