Paccar (PCAR) will likely benefit from increasing demand in the truck market in 2026, BofA Securities said Tuesday in a note to clients.
BofA upgraded the company to buy from neutral and lifted its price target to $121.50 from $116.
Paccar shares underperformed last year due to price versus cost concerns as well as a production downturn in the truck market, the investment firm said.
BofA said that machinery end markets are seeing a supply/demand imbalance, with too much equipment amid slowing demand, but it expects trucks to be the first segment to come into balance.
"While pricing risks likely linger in 1H, the story for the Machinery sector in 2025 is who can grow in 2026? We expect truck green shoots to emerge in '25 to provide visibility to grow in '26," the note said.
Paccar is "one of the few OEMs in our sector likely to report a new peak EPS next year," BofA said.
Price: 110.11, Change: +1.95, Percent Change: +1.80
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。