The Analyst Dynamic
Shares of Cummins, Inc. (Symbol: CMI) have recently soared above the average analyst 12-month target price of $267.31, now trading at $274.84/share. When a stock hits this coveted target, analysts face a crucial juncture: adjust their target upward or downgrade due to valuation concerns. What influences this decision? Fundamentals shaping the company trajectory play a pivotal role; positive developments often spark a call for elevating the target price.
Diverse Analyst Landscape
Cummins, Inc. has attracted attention from 13 analysts within the Zacks coverage sphere, contributing to the noted average target. However, this average represents just a numerical mean. While some analysts set conservative targets, envisaging a price of $235.00, others are more bullish, pegging it at $303.00. The standard deviation stands at $21.534.
Why focus on the average CMI price target, you ask? It’s about tapping into the collective wisdom of multiple minds instead of banking on the opinion of a sole expert. As CMI surpasses the $267.31/share target, investors get a strong signal to reevaluate the company. Is this milestone just a stepping stone to a loftier target, or is it time to consider profit-taking as valuations stretch?
Analyst Ratings at a Glance
| Recent CMI Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 3 | 3 | 3 | 3 |
| Buy ratings: | 1 | 1 | 1 | 0 |
| Hold ratings: | 10 | 9 | 9 | 9 |
| Sell ratings: | 1 | 1 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 2.72 | 2.7 | 2.61 | 2.69 |
The average rating on a scale of 1 to 5, where 1 represents Strong Buy and 5 signifies Strong Sell. Data utilized in this article is sourced from Zacks Investment Research via Quandl.com. Stay informed with the latest Zacks research report on CMI for free.
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The opinions expressed in this piece belong solely to the author and do not necessarily mirror those of Nasdaq, Inc.
