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Morgan Stanley Raises PACCAR (PCAR) Price Target Following Machinery Sector Model Updates

PACCAR Inc (NASDAQ:PCAR) is included among the 13 Best NASDAQ Dividend Stocks to Buy Now.

On February 3, Morgan Stanley raised its price recommendation on PACCAR Inc (NASDAQ:PCAR) to $109 from $102. It reiterated an Equal Weight rating on the shares. The change came as part of the firm’s latest model updates across its North American machinery and construction coverage.

Speaking during the Q4 2025 earnings call, CEO Preston Feight said PACCAR generated $6.8 billion in revenue and $557 million in net income for the quarter. For the full year, the company reported $28.4 billion in revenue and $2.64 billion in adjusted net income. He noted that this ranked as the fourth most profitable year in PACCAR’s history and extended its long track record to 87 consecutive years of profitability.

Feight also pointed to strong performance from the company’s support divisions. PACCAR Parts and PACCAR Financial Services both delivered record revenue, both for the quarter and the full year. He said this reflected steady demand and continued strength in those businesses. He added that PACCAR remained well-positioned despite recent tariff and emissions developments. The Section 232 truck tariff, which took effect on November 1, created an advantage because PACCAR manufactures trucks within the U.S., Canada, and Mexico to serve those markets locally. He said the company ended the year with greater clarity around tariff and emissions policies.

Looking ahead, Feight expects the U.S. and Canadian Class 8 truck market to fall between 230,000 and 270,000 units in 2026. He said economic growth, clearer regulatory conditions, and improving freight trends should support demand. He also highlighted DAF’s continued expansion and the recognition it has received across Europe and South America.

PACCAR Inc (NASDAQ:PCAR) is a global truck manufacturer. The company designs, builds, and supports premium light-, medium-, and heavy-duty trucks under the Kenworth, Peterbilt, and DAF brands.

While we acknowledge the potential of PCAR to grow, 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 PCAR and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 14 Best Real Estate Stocks to Buy According to Hedge Funds and 14 Best Warren Buffett Dividend Stocks to Buy

Disclosure: None.

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