Paccar stock rating reiterated at Market Perform by Raymond James

Investing.com - Raymond James has reiterated its Market Perform rating on PACCAR (NASDAQ:PCAR), according to a note published Tuesday. The truck manufacturer, with a market capitalization of $52.18 billion and a P/E ratio of 17.04, is currently trading above its InvestingPro Fair Value.

The truck manufacturer has trimmed its U.S./Canada Class 8 industry retail sales forecast, with the top end reduced by 15,000 units compared to its July forecast, according to Raymond James analyst Tim Thein. This aligns with InvestingPro data showing an 11.87% revenue decline in the last twelve months, with analysts anticipating further sales decline in the current year.

PACCAR expects the market to recover somewhat in 2026, with a low-single-digit percentage increase implied at the midpoint of its guidance. The company also foresees a flattish European and Brazilian market in 2027.

Raymond James believes management will guide to a sequential improvement in gross margins for the Truck/Parts business during Tuesday’s conference call, based almost entirely on the recently-announced Section 232 tariff ruling scheduled to take effect in November.

PACCAR has scheduled its conference call for Tuesday at 12:00 p.m. ET to discuss these developments with investors and analysts.

In other recent news, PACCAR Inc. reported its third-quarter earnings, revealing a mixed performance. The company posted earnings per share of $1.12, which fell short of the consensus estimate of $1.16, though it surpassed Morgan Stanley’s forecast of $1.04. PACCAR’s revenue for the quarter reached $6.67 billion, exceeding the anticipated $6.18 billion. However, total sales in the Truck, Parts & Other segment decreased by 20.7% to $6.107 billion, slightly below the expected $6.163 billion. Wolfe Research has maintained its Underperform rating with a price target of $86, while Truist Securities reiterated a Hold rating with a $97 target following the earnings miss. Morgan Stanley continues to rate PACCAR as Equalweight, setting a price target of $90. Investors are now looking forward to the company’s fourth-quarter guidance on truck deliveries and gross margins. These developments reflect the current state of PACCAR’s financial performance and market outlook.

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