Cummins upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs upgraded Cummins (CMI) to Buy from Neutral with a price target of $431, up from $410. The firm sees structurally higher Power Systems profitability and “derisked” Environmental Protection Agency 2027 expectations. Goldman is constructive on reduced expectations around EPA 27, and sees attractive unit profitability across a range of EPA 27 outcomes for Cummins. U.S. truck production expectations have been reduced with key indicators such as truck spot rates and load-to-van ratio stabilizing, the analyst tells investors in a research note.