U.S. Stock Market Performance: U.S. stocks showed mixed results, with the Dow slightly up by 0.03%, while the Nasdaq and S&P 500 fell by 0.23% and 0.09%, respectively. Energy shares rose by 1.1%, but consumer staples stocks declined by 0.7%.
Earnings Reports: Cummins Inc. exceeded earnings expectations for Q3, reporting adjusted earnings of $5.59 per share and quarterly sales of $8.317 billion, surpassing market estimates.
Notable Stock Movements: Baiya International Group's shares surged by 121%, while Forge Global Holdings saw a 68% increase after an acquisition announcement. Conversely, DIH Holding's shares plummeted by 64%, and ACV Auctions and Aspen Aerogels experienced significant declines.
Global Market Trends: European shares mostly fell, with the eurozone's STOXX 600 down 0.3%, while Asian markets closed higher, led by Japan's Nikkei 225, which rose by 1.34%. Additionally, U.S. employers announced a sharp increase in job cuts for October.
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 508.60 USD with a low forecast of 385.00 USD and a high forecast of 600.00 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.
11 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 508.60 USD with a low forecast of 385.00 USD and a high forecast of 600.00 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.
4 Buy
7 Hold
0 Sell
Moderate Buy
Current: 574.840
Low
385.00
Averages
508.60
High
600.00
Current: 574.840
Low
385.00
Averages
508.60
High
600.00
Wells Fargo
Buy
initiated
Al Analysis
2026-01-05
Reason
Wells Fargo
Price Target
Al Analysis
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.
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Barclays
Equal Weight
to
Overweight
upgrade
$515 -> $546
2025-12-19
Reason
Barclays
Price Target
$515 -> $546
2025-12-19
upgrade
Equal Weight
to
Overweight
Reason
Barclays upgraded Cummins to Overweight from Equal Weight with a price target of $546, up from $515. The firm adjusted ratings in the machinery and construction group as part of its 2026 outlook. Barclays maintains a positive outlook for the sector heading into 2026, expecting modest share gains after several years of strong performance. It prefers machinery and rental companies due to cyclical and macroeconomic factors. The upgrade of Cummins reflects the new emissions rules in 2027 pushing forward, the company's research and development expenses coming down, and power generation bridging its earnings gap.
Barclays
Equal Weight -> Overweight
upgrade
$546
2025-12-19
Reason
Barclays
Price Target
$546
2025-12-19
upgrade
Equal Weight -> Overweight
Reason
Barclays upgraded Cummins to Overweight from Equal Weight with a $546 price target.
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.
