PACCAR (NASDAQ:PCAR) Given New $164.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan raised PACCAR’s price target to $164 from $155 and maintained an “overweight” rating, implying 18.66% potential upside from the reported share price.
• PACCAR’s second-quarter earnings beat expectations, with EPS of $1.43 versus the $1.36 consensus. Revenue was approximately $7.0 billion, up 0.5% year over year but slightly below estimates.
• Analyst sentiment remains cautious overall: PACCAR has an average “Hold” rating and a consensus price target of $125.40, despite institutional investors owning 64.9% of the stock.

PACCAR (NASDAQ:PCAR - Get Free Report) had its price objective increased by JPMorgan Chase & Co. from $155.00 to $164.00 in a report released on Wednesday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price points to a potential upside of 18.66% from the stock's current price.

Other equities research analysts also recently issued reports about the company. Weiss Ratings downgraded PACCAR from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, May 21st. BNP Paribas Exane initiated coverage on PACCAR in a report on Tuesday, March 31st. They issued a "neutral" rating and a $126.00 target price on the stock. Wells Fargo & Company set a $125.00 price target on shares of PACCAR and gave the stock an "equal weight" rating in a research report on Wednesday, April 29th. Evercore set a $139.00 price target on shares of PACCAR in a research report on Monday, May 11th. Finally, Morgan Stanley raised their price target on shares of PACCAR from $109.00 to $113.00 and gave the stock an "equal weight" rating in a report on Friday, July 17th. Three investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $125.40.

PACCAR Price Performance

PCAR opened at $138.21 on Wednesday. The firm has a market capitalization of $72.74 billion, a P/E ratio of 29.41, a PEG ratio of 1.22 and a beta of 0.97. The stock has a fifty day moving average of $120.01 and a 200-day moving average of $120.57. The company has a quick ratio of 2.91, a current ratio of 3.11 and a debt-to-equity ratio of 0.52. PACCAR has a 12-month low of $92.25 and a 12-month high of $139.24.

PACCAR (NASDAQ:PCAR - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The company reported $1.43 earnings per share for the quarter, beating analysts' consensus estimates of $1.36 by $0.07. PACCAR had a return on equity of 12.81% and a net margin of 8.91%.The business had revenue of $7 billion for the quarter, compared to the consensus estimate of $7.05 billion. During the same quarter in the previous year, the company posted $1.37 earnings per share. PACCAR's revenue for the quarter was up .5% compared to the same quarter last year. Equities analysts forecast that PACCAR will post 5.66 EPS for the current fiscal year.

Institutional Investors Weigh In On PACCAR

Several institutional investors have recently made changes to their positions in PCAR. Vanguard Group Inc. increased its holdings in PACCAR by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 63,475,226 shares of the company's stock worth $6,951,172,000 after buying an additional 363,782 shares during the last quarter. Wellington Management Group LLP lifted its stake in PACCAR by 18.6% in the fourth quarter. Wellington Management Group LLP now owns 22,977,556 shares of the company's stock valued at $2,516,272,000 after acquiring an additional 3,597,283 shares during the last quarter. State Street Corp lifted its stake in PACCAR by 0.4% in the fourth quarter. State Street Corp now owns 22,497,197 shares of the company's stock valued at $2,494,269,000 after acquiring an additional 94,869 shares during the last quarter. Geode Capital Management LLC grew its position in PACCAR by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 12,308,610 shares of the company's stock worth $1,350,867,000 after acquiring an additional 50,622 shares in the last quarter. Finally, Norges Bank bought a new stake in PACCAR in the fourth quarter worth approximately $727,745,000. 64.90% of the stock is currently owned by institutional investors and hedge funds.

Key PACCAR News

Here are the key news stories impacting PACCAR this week:

• Positive Sentiment: Earnings exceeded expectations: PACCAR reported second-quarter EPS of $1.43, above the $1.36 analyst consensus and up from $1.37 a year ago. Revenue reached approximately $7.0 billion, broadly in line with expectations and 0.5% higher year over year. PACCAR earnings results
• Positive Sentiment: Profitability improved: Higher truck profitability and record parts revenue helped offset softer sales. Management said net income increased 24% from the preceding quarter, while stronger orders supported higher production rates. PACCAR Q2 earnings surpass expectations
• Positive Sentiment: Outlook remains constructive: Stable truck demand, improved freight rates and strong customer orders are supporting build rates and margins. Analysts also highlighted greater regulatory clarity as a factor supporting PACCAR’s outlook. PCAR Q2 deep dive
• Neutral Sentiment: Strategic investment continues: Management discussed ongoing investments intended to support PACCAR’s long-term competitive position, though these could affect near-term spending and returns. PACCAR Q2 earnings call highlights
• Negative Sentiment: Revenue growth was modest: Quarterly revenue slightly trailed the $7.05 billion consensus, and softer sales remain a concern in the cyclical commercial-truck market. PCAR’s valuation—about 29 times earnings—also leaves less room for disappointing results.

About PACCAR

PACCAR Inc is a global technology leader in the design, manufacture and customer support of light-, medium- and heavy-duty commercial vehicles. The company's products are marketed under well-known brand names including Kenworth, Peterbilt and DAF and span vocational and long-haul applications. PACCAR's core business includes vehicle engineering and assembly as well as the supply of components and proprietary powertrain systems designed to meet regulatory and customer performance requirements.

In addition to truck manufacturing, PACCAR operates a comprehensive aftermarket parts business, distributes used trucks and provides commercial vehicle financing and leasing through its financial services operations.

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