Perimeter Solutions: Morgan Stanley has identified Perimeter Solutions, a manufacturer of firefighting foam, as a new top pick. Analyst Daniel Kutz highlights the company's attractive growth potential and defensive nature in uncertain economic conditions. The stock's price target has been raised from $17 to $25 per share, reflecting a compelling valuation. Shares have surged 75% this year, with catalysts including potential mergers and increased wildfire activity.
Chewy: The online pet retailer Chewy is also a favored stock, with analyst Nathan Feather expressing confidence ahead of its earnings report on September 10. Chewy's stock has risen 23% this year, and the firm anticipates strong second-quarter earnings driven by improving market trends and underestimated expense upside. Morgan Stanley maintains an "Overweight" rating, citing market share gains and a promising margin inflection.
Nu Holdings: Brazilian digital bank Nu Holdings is projected to have significant growth potential, according to analyst Jorge Kuri. Following a strong earnings report, Kuri notes that the stock is undervalued and could reach a valuation of $100 billion by 2026, up from $62 billion today. Shares have increased by 42% this year, supported by robust unit economics and technological capabilities.
Cummins: The firm believes Cummins can outperform despite market concerns about a demand downturn in heavy-duty trucks. The company's operational improvements and investments in Power Systems are expected to bolster its performance.
Cadence Design Systems: Cadence is recognized for its strong position in chip design and electronic design automation tools. The company benefits from deep customer relationships and a solid balance sheet, positioning it for strong structural growth.
Wall Street analysts forecast CMI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMI is 538.00 USD with a low forecast of 385.00 USD and a high forecast of 653.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
Wall Street analysts forecast CMI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMI is 538.00 USD with a low forecast of 385.00 USD and a high forecast of 653.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
6 Hold
0 Sell
Moderate Buy
Current: 583.070
Low
385.00
Averages
538.00
High
653.00
Current: 583.070
Low
385.00
Averages
538.00
High
653.00
Barclays
Overweight
maintain
$546 -> $610
2026-01-23
New
Reason
Barclays
Price Target
$546 -> $610
AI Analysis
2026-01-23
New
maintain
Overweight
Reason
Barclays raised the firm's price target on Cummins to $610 from $546 and keeps an Overweight rating on the shares. The firm adjusted targets in the machinery and construction group as part of a Q4 preview. Companies benefiting from interest rate cuts "still reign supreme," the analyst tells investors in a research note. Barclays anticipates "conservative" initial outlooks for 2026.
Wells Fargo
Overweight
maintain
$599 -> $630
2026-01-23
New
Reason
Wells Fargo
Price Target
$599 -> $630
2026-01-23
New
maintain
Overweight
Reason
Wells Fargo raised the firm's price target on Cummins to $630 from $599 and keeps an Overweight rating on the shares. The firm reiterates its positive outlook for the Machinery, Industrials & Environmental Services space heading into earnings. Wells argues the Machinery supply-driven recovery is broadening to new equipment, non-residential lead indicators are accelerating, and cash conversion is improving.
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Wells Fargo
Buy
initiated
2026-01-05
Reason
Wells Fargo
Price Target
2026-01-05
initiated
Buy
Reason
Wells Fargo added Cummins to the firm's Q1 2026 Tactical Ideas List. Wells is a buyer of Cummins entering 2026 where it sees structurally improving earnings power from U.S. clean air regulations, undersupplied tier 1 generator market for data centers, and bottoming U.S. truck demand amid a spot rate inflection.
Raymond James
Tim Thein
Market Perform -> Outperform
upgrade
$585
2025-12-22
Reason
Raymond James
Tim Thein
Price Target
$585
2025-12-22
upgrade
Market Perform -> Outperform
Reason
Raymond James analyst Tim Thein upgraded Cummins to Outperform from Market Perform with a $585 price target. The firm's check-in with U.S. truck dealers suggests that while the near-term tone cautious, reflective of an extended freight recession, there was a "notable change in sentiment" regarding the second half of 2026. Raymond James now sees "glimmers of hope" for an eventual truckload rate recovery. There are "encouraging" signs that suggest a bottoming process for the truckload segment could be in the offing, the analyst tells investors in a research note. It cites increased confidence in a faster recovery in truck markets for the upgrade of Cummins.
About CMI
Cummins Inc. is a global power solutions company. The Company’s segments are Components, Engine, Distribution, Power Systems, and Accelera. Components segment designs, manufactures, and supplies products which include axles, drivelines, brakes, and suspension systems. Engine segment manufactures and markets a range of diesel and natural gas-powered engines under the Cummins brand name, for on and off-highway markets. Distribution segment includes sale and support of a range of products and services, including power generation systems, high-horsepower engines, heavy and medium duty engines, and others. Power Systems segment is a power provider, which designs, manufactures and sells engines for industrial applications, prime power generator sets, alternators, and others. Accelera segment designs, manufactures, sells, and supports electrified power systems with components and subsystems, including battery, fuel cell and electric powertrain and hydrogen production technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
