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Investing.com - UBS upgraded PACCAR (NASDAQ:PCAR), a $51.75 billion machinery giant, from Sell to Neutral and raised its price target to $100.00 from $81.00. According to InvestingPro data, the stock trades at 15.94x earnings, while maintaining an impressive 55-year streak of dividend payments.
The upgrade comes after UBS analyst Steven Fisher noted that the firm’s "downside volume and margin catalyst has played out," with PACCAR now guiding to a material decline in deliveries compared to its first-half run rate.
UBS observed that PACCAR management has pushed out its expectation for a positive inflection in margins and demand in the third quarter, leading the firm to view the risk/reward profile as balanced.
The firm acknowledged downside risks including the possibility that PACCAR could be prematurely forecasting improvement in the truck market later this year, and that resolution of trade and other policies might be pushed into 2026.
UBS balanced these concerns against potential positive catalysts, including economic stimulus effects, bonus depreciation potentially driving fleet replacement purchases, and the possibility that the Section 232 trade case could drive a positive margin inflection.
In other recent news, PACCAR Inc. reported financial results for the second quarter of 2025 that exceeded analysts’ expectations. The company’s earnings per share reached $1.37, surpassing the anticipated $1.29. Additionally, PACCAR’s revenue came in at $7.51 billion, which was higher than the projected $7.03 billion. These results highlight the company’s strong performance in the quarter. The better-than-expected earnings and revenue figures are likely to be of interest to investors monitoring PACCAR’s financial health. Furthermore, analysts and investors may view these developments as a positive indicator of the company’s strategic direction. The recent performance could influence future analyst ratings and investor sentiment. As PACCAR continues to report its financial results, stakeholders will likely keep a close watch on the company’s progress.
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