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Research Alert: CFRA Reiterates Hold Opinion On Shares Of Cmi
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Research Alert: CFRA Reiterates Hold Opinion On Shares Of Cmi
Aug 12, 2025 9:45 AM

12:15 PM EDT, 08/12/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price to $400 from $350, valuing shares at 17x our 2026 EPS estimate of $23.55 (up from $23.01; 2025 EPS outlook lifted to $22.27 from $21.31), above CMI's long-term historical average. We view the higher multiple as justified, as CMI's Power Systems and Distribution businesses benefit from secular growth within power generation markets. Lower on-highway demand is weighing on Engine and Components sales, with truck build rates trending lower and customers showing caution amid tariff uncertainty. The dynamic macro backdrop has resulted in scrapped guidance for 2025, though we expect 2H 2025 to see similar trends. Standout power generation performance resulted in our target price increase, with data center-led demand contributing to stronger earnings power for CMI. Capacity investments are expected to yield results over the next year, with CMI aiming to expand its market share of roughly 20% of the data center backup power market.

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