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Big sales forecast by CEO boosts Cummins stock

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A bold outlook from Cummins Inc. solidified Wall Street's positive outlook for the engine maker in Tuesday trading.

Cummins Chairman and CEO Tim Solso said Tuesday that 2011 would be a record year for the Columbus manufacturer. Company officials set a goal of $30 billion in sales in 2015 and said they expect Cummins to grow at an annual rate of about 14 percent to reach that target.

Cummins shares rose 6 percent Tuesday after the news, closing at $92.20 each. They continued to climb Wednesday, rising to $93.28 by midday.

Citigroup Inc. stock analyst Timothy Thein said he liked several things he heard during the Solso's presentation, including higher-than-expected long-term profit targets and cost-cutting plans.

"Getting there of course is another issue, but Cummins' most recent performance relative to its last target certainly adds credibility," Thein wrote in a Wednesday note to investors. "Plus, its already well-established position in attractive growth markets and tailwind from clearly-visible secular drivers also help to engender confidence, in our view."

In addition to backing a previous "Buy" rating, Thein stuck by his $115 price target for the company.

Ben Elias of Sterne Agee cut his price target for Cummins by $13, to $143, noting that that growth in the commercial vehicle industry is tough to predict and can sometimes be a bumpy road. But he said the company has proven in the past that it can meet its financial targets.

"We view Cummins as a very conservative and deliberate company and thus look at today's 'long-term' targets, as very tangible, and readily achievable," Elias wrote in a note backing his "Buy" rating.

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  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

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