Cummins stock rating downgraded to Hold by Freedom Broker despite price target increase

Investing.com - Freedom Broker downgraded Cummins (NYSE:CMI) from Buy to Hold on Monday, while simultaneously raising its price target to $399.00 from $368.00. The stock, currently trading near its 52-week high of $391.56, has delivered impressive returns with a 34.5% gain over the past year.

The research firm acknowledged Cummins’ ability to offset declines through its diversified business portfolio, despite facing headwinds in both its Engine and Components segments.

Freedom Broker analyst Sergey Glinyanov noted that the company delivered stronger margins and earnings per share that exceeded the firm’s expectations.

This performance demonstrated Cummins’ resilience in navigating segment-specific challenges through its diversified operations.

The seemingly contradictory move of downgrading the rating while raising the price target reflects Freedom Broker’s updated assessment of Cummins’ current valuation relative to its future prospects.

In other recent news, Cummins Inc . reported a strong second quarter for 2025, with earnings per share (EPS) of $6.43, surpassing analysts’ expectations of $5.26. The company’s revenue reached $8.6 billion, slightly above the anticipated $8.47 billion. Despite the impressive performance, Cummins has not reinstated its full-year guidance due to uncertainties related to macroeconomic conditions, freight, and tariffs. Wolfe Research upgraded Cummins’ stock rating from Peerperform to Outperform, citing the company’s structurally higher margins and earnings potential, although challenges persist in the Engine segment. Additionally, Bernstein SocGen Group raised its price target on Cummins to $385 from $319, maintaining a Market Perform rating. These developments reflect a positive outlook from analysts, supported by the company’s recent earnings success.

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