IBJNews

Big sales forecast by CEO boosts Cummins stock

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  2. If you only knew....

  3. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

  4. The facts contained in your post make your position so much more credible than those based on sheer emotion. Thanks for enlightening us.

  5. Please consider a couple of economic realities: First, retail is more consolidated now than it was when malls like this were built. There used to be many department stores. Now, in essence, there is one--Macy's. Right off, you've eliminated the need for multiple anchor stores in malls. And in-line retailers have consolidated or folded or have stopped building new stores because so much of their business is now online. The Limited, for example, Next, malls are closing all over the country, even some of the former gems are now derelict.Times change. And finally, as the income level of any particular area declines, so do the retail offerings. Sad, but true.

ADVERTISEMENT