- Cummins (CMI +3.2%) is initiated with a Buy rating and $150 price target at CLSA, which believes CMI shares are not expensive relative to trough expectations in 2017.
- CLSA believes the controversy surrounding CMI's market share decline in its core North American truck market is overblown in the near to medium term and is masking an improving North American on-highway market in late 2017 and improving global industrial end markets in Asia and even Latin America.
- The firm also notes CMI's pristine balance sheet for appreciation, as it yields fine returns to shareholders via dividends and share buybacks.