Cummins had a solid quarter with a sharp rise in revenues across all core segments including engines, components, power systems, and of course, its innovative New Power division. The company was able to meet our target price. The management went on to provide a particularly strong guidance for 2021 on account of strong demand from the Chinese market that is witnessing a surge in construction activity after a solid recovery from the Covid-19 pandemic. The company’s focus on heavy-duty trucks is also expected to ensure that its future growth is fuelled by U.S. President Joe Biden’s $2 trillion infrastructure plan. Cummins faced its fair share of headwinds in the quarter resulting from the global semiconductors shortage but emerged a winner beating Wall Street expectations. Despite the surge, we keep our ‘Hold’ rating on the stock intact with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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