PACCAR (NASDAQ:PCAR) Stock Rating Raised to Buy at Freedom Broker

Key Points

• Freedom Broker upgraded PACCAR to “buy” from “hold”, but lowered its price target to $120 from $132. The new target implies approximately 17.75% upside from the reported share price.
• PACCAR’s latest quarter exceeded expectations on revenue, which rose 20.8% year over year to $8.50 billion, while EPS of $1.61 matched consensus estimates.
• Analyst sentiment remains mixed: seven firms rate PACCAR a buy and eight rate it a hold, producing a consensus “hold” rating and average price target of $131.96. Institutional investors own 64.9% of the company.

PACCAR (NASDAQ:PCAR - Get Free Report) was upgraded by investment analysts at Freedom Broker from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has a $120.00 price target on the stock, down from their prior price target of $132.00. Freedom Broker's price target would indicate a potential upside of 17.75% from the stock's current price.

Several other equities research analysts also recently commented on the stock. JPMorgan Chase & Co. cut their target price on shares of PACCAR from $142.00 to $132.00 and set an "overweight" rating on the stock in a research report on Wednesday, October 28th. Citigroup reduced their price objective on shares of PACCAR from $140.00 to $115.00 and set a "neutral" rating on the stock in a research note on Monday, October 12th. BNP Paribas Exane decreased their price objective on PACCAR from $136.00 to $107.00 and set a "neutral" rating for the company in a report on Tuesday, October 6th. Royal Bank Of Canada raised PACCAR from a "sector perform" rating to an "outperform" rating and raised their target price for the stock from $130.00 to $150.00 in a research report on Thursday, September 10th. Finally, Evercore upped their price target on PACCAR from $139.00 to $162.00 and gave the company an "outperform" rating in a research report on Thursday, October 8th. Seven investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $131.96.

PACCAR Price Performance

Shares of PCAR opened at $101.91 on Friday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 2.98 and a current ratio of 3.22. PACCAR has a 52 week low of $93.86 and a 52 week high of $139.24. The stock has a market capitalization of $53.66 billion, a price-to-earnings ratio of 19.41, a PEG ratio of 1.31 and a beta of 0.96. The stock has a fifty day moving average of $114.82 and a 200-day moving average of $120.15.

PACCAR (NASDAQ:PCAR - Get Free Report) last issued its earnings results on Tuesday, October 27th. The company reported $1.61 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $1.61. PACCAR had a return on equity of 13.76% and a net margin of 9.50%. The business had revenue of $8.50 billion during the quarter, compared to analysts' expectations of $7.48 billion. During the same quarter in the prior year, the firm earned $1.12 EPS. The business's revenue for the quarter was up 20.8% compared to the same quarter last year. As a group, sell-side analysts anticipate that PACCAR will post 5.84 earnings per share for the current fiscal year.

Institutional Trading of PACCAR

Several large investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in PACCAR in the second quarter worth $4,927,720,000. Bank of America Corp DE bought a new stake in shares of PACCAR during the second quarter valued at approximately $1,130,496,000. Bank of New York Mellon Corp bought a new position in shares of PACCAR in the 2nd quarter worth $453,107,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of PACCAR by 9.8% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,424,315 shares of the company's stock valued at $411,329,000 after acquiring an additional 305,215 shares in the last quarter. Finally, Amundi raised its stake in PACCAR by 108.7% in the second quarter. Amundi now owns 3,197,359 shares of the company's stock worth $384,066,000 after buying an additional 1,665,545 shares in the last quarter. Institutional investors and hedge funds own 64.90% of the company's stock.

About PACCAR

PACCAR Inc NASDAQ: PCAR is a global manufacturer of heavy- and medium-duty trucks. Through its Kenworth, Peterbilt and DAF brands, the company produces vehicles used for long-haul transportation, construction, distribution and other commercial applications. PACCAR also manufactures PACCAR-branded engines and provides related parts and aftermarket support.

The company's operations extend across North America, Europe, South America, Australia and other international markets. In addition to truck manufacturing, PACCAR operates a worldwide parts distribution network and offers financial services, including retail financing and leasing for trucks and related equipment.

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