02:30 AM EDT, 05/03/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We update our 12-month price target to $290 from $275, valuing shares at 13.5x our 2025 EPS forecast of $21.45 (up $0.31; 2024 EPS lifted to $18.46 from $18.44), a slight discount to CMI's historical forward average given the downshift in demand within North American truck markets. CMI posted Q1 operating EPS of $5.10 (down 10% Y/Y), $0.12 above consensus despite a Y/Y decline. Revenues also experienced contraction, declining by 1% over the prior year as growth in Distribution (up 5%) and Power Systems (3%) was more than offset by a slide in Component sales (down 6%). Moving through 2024, we believe sales will remain in contraction territory vs. 2023. Despite a slower demand environment in the near term, pricing and operational improvements have supported margin expansion, with gross margin widening by 50 bps Y/Y to 24.5%. We're encouraged by CMI's execution on profitability despite lower volumes of medium-duty and heavy-duty trucks. We keep shares at Hold.