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Investing.com - Wolfe Research raised its price target on Paccar (NASDAQ:PCAR) to $86.00 from $83.00 on Wednesday, while maintaining an Underperform rating on the truck manufacturer. The company, currently valued at $53.6 billion and trading at $102.11, appears overvalued according to InvestingPro’s Fair Value model.
The research firm cited better-than-expected gross margins as the primary reason for the modest price target increase, which led to a revision in its 2025 earnings per share estimate from $5.20 to $5.37.
Despite the upward adjustment, Wolfe Research’s 2025 EPS forecast remains approximately 3% below the prior consensus estimate, reflecting continued caution about the company’s near-term prospects.
The firm expressed skepticism about a significant recovery in Class 8 truck demand and margins next year, noting that industry fundamentals remain weak with record inventory levels and muted order trends.
For 2026, Wolfe Research slightly increased its EPS estimate from $5.55 to $5.60, but this projection still stands approximately 15% below prior consensus expectations, reinforcing the firm’s cautious stance on Paccar’s medium-term outlook.
In other recent news, PACCAR Inc. reported impressive financial results for the second quarter of 2025, with earnings per share reaching $1.37, surpassing the forecast of $1.29. The company’s revenue also exceeded expectations, totaling $7.51 billion compared to the anticipated $7.03 billion. Despite a 15% year-over-year decline in consolidated revenue and an 18% drop in truck deliveries, these earnings figures highlight PACCAR’s strong performance. Bernstein responded by raising its price target for PACCAR stock to $118, maintaining an Outperform rating. Freedom Broker also increased its price target to $90, citing strong parts sales while keeping a Hold rating. Meanwhile, UBS upgraded PACCAR’s stock rating from Sell to Neutral, raising its price target to $100. The UBS analyst noted that the 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. These developments reflect the company’s strategic adjustments amidst challenging market conditions.
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