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Investing.com - Freedom Broker has raised its price target on PACCAR (NASDAQ:PCAR) to $90.00 from $87.00 while maintaining a Hold rating on the truck manufacturer’s stock. According to InvestingPro data, analyst targets for PACCAR range from $81 to $131, with 5 analysts recently revising their earnings expectations downward.
PACCAR reported consolidated revenue of approximately $7.5 billion in the second quarter, representing a significant 15% year-over-year decline. Truck deliveries fell by almost 18% across all geographic markets, with the company’s core U.S. market experiencing the steepest decline at 20%. Despite these challenges, InvestingPro analysis shows PACCAR maintains strong financial health with a current ratio of 5.39x and moderate debt levels.
Despite delivering 39,300 units, which slightly exceeded management’s forecast, PACCAR’s CEO noted that the North American truck market continues to face challenges from economic uncertainty, tariff-related ambiguities, and a weak freight environment.
The company’s parts division provided a bright spot, achieving a new quarterly revenue record of $1.72 billion, while financial services revenue also increased due to portfolio expansion. These positive segments helped offset some of the weakness in the truck delivery business.
PACCAR’s net income declined 36% year-over-year, an improvement from the 58% drop in Q1 2025, which had included a one-time $265 million after-tax settlement with the European Commission related to emissions. The company met its gross margin forecast with a quarterly margin of 13.9%.
In other recent news, PACCAR Inc. reported impressive financial results for the second quarter of 2025. The company exceeded earnings expectations with an earnings per share (EPS) of $1.37, surpassing the forecast of $1.29. Additionally, PACCAR’s revenue for the quarter was $7.51 billion, outpacing the anticipated $7.03 billion. These results indicate a strong performance for the company during this period. In related developments, UBS upgraded PACCAR’s stock rating from Sell to Neutral. The investment firm also raised its price target for the company from $81.00 to $100.00. UBS analyst Steven Fisher noted that the downside volume and margin catalyst had played out, influencing the upgrade decision. These recent developments reflect a period of notable activity for PACCAR.
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