Raymond James reiterated a Strong Buy rating on PACCAR (NASDAQ:PCAR) after taking in the company's investor day presentation in New York City.
The event featured a longer-term outlook and a brief update on Q2 which was on the high end of the previous range.
Much of the day was noted to be focused around PCAR’s role across a slew of technologies like EV, autonomous, connected cars – where the Raymond James analyst team believe PCAR garners a strong value proposition.
Notably, Raymond James thinks the real investment case on PCAR still centers around a margin expansion story as new model production takes hold and the likely underappreciated, increasingly sticky and high margin parts earnings stream. The firm has greater conviction that the parts earnings will accelerate throughout the decade as MX engines reach the overhaul stage.
The Seeking Alpha Quant Rating on PACCAR (PCAR) is flashing Buy and is the third highest of all construction machinery and heavy truck stocks.