Goldman Sachs has upgraded Cummins Inc. from Neutral to Buy, raising its price target to $431. This marks a shift in sentiment driven by improving regulatory dynamics and a stabilizing U.S. freight market.
Why the Upgrade
🔹 Analysts see stronger profitability ahead, particularly in the Power Systems division.
🔹 Cummins is well-positioned to benefit from the 2027 EPA emissions standards, with adaptable strategies across multiple regulatory outcomes.
🔹 U.S. trucking indicators such as spot rates and load-to-van ratios have stabilized, supporting a more constructive industry outlook.
Dividend Fundamentals
🔹 Forward Dividend Yield: Approximately 2.25%
🔹 Payout Ratio: Around 35.2%, maintaining a healthy balance between returns and reinvestment
🔹 Steady history of dividend growth, reflecting consistent shareholder commitment
🔹 Next Dividend: $1.82 per share, payable June 5, 2025
Cummins is emerging as a compelling industrial pick with a robust dividend foundation and renewed momentum in a transforming regulatory landscape.