Citi Raises Cummins (CMI) PT as Machinery Demand Outlook Improves

Cummins Inc. (NYSE:CMI) is one of the best hydrogen stocks to buy right now. On December 11, Citi increased the price target for Cummins Inc. (NYSE:CMI) stock to $580 from $530 while keeping a Buy recommendation. The change was part of Citi updating its financial models for the machinery industry looking ahead to 2026. The bank stated that it sees good value in the machinery sector overall and has strong belief in growth for construction and mining areas starting next year. However, it noted that agriculture and truck markets may face short-term difficulties.

Citi Raises Cummins (CMI) PT as Machinery Demand Outlook Improves

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Earlier that day, on December 11, Barclays reaffirmed a Hold rating on the stock and kept the price target at $515. And on November 25, UBS upgraded Cummins stock rating to Neutral from Sell and increased the price target to $500 from $350. According to the bank, the upgrade was based on the view that the truck market cycle will reach its lowest point in 2026, making the stock’s risks and potential rewards more even.

UBS analysts see possible lower results than expected for Cummins’ engine and parts businesses in the first half of 2026. The reasons given were falling truck market conditions and pressure on profit margins as the market hits bottom. However, the analysts stated, these issues could be balanced by better than expected performance in power generation.

Cummins Inc. (NYSE:CMI) is an American multinational corporation that designs, manufactures, and distributes diesel engines, electric vehicle components, and power generation products. The company’s main products in the hydrogen sector are hydrogen fuel cell powertrains for commercial vehicles, heavy-duty hydrogen engines, and large-scale electrolyzers.

While we acknowledge the potential of Cummins Inc. (NYSE:CMI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CMI and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.