Investing.com - Financial Markets Worldwide
💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Cummins rebounds from diesel lawsuit, extends strong YTD push

Published 11/15/2016, 05:48 PM
Cummins rebounds from diesel lawsuit, extends strong YTD push
BARC
-
CMI
-
VOWG_p
-
  • Cummins (NYSE:CMI) responded with a 2.2% bounce in today's trade following yesterday's news that it allegedly conspired with Fiat Chrysler to hide problems with engines on certain generations of Dodge Ram pickups.
  • Barclays (LON:BARC) analyst Robert Wertheimer does not foresee a significant new liability for CMI, saying that while the lawsuit attempts to draw a connection to the emissions cheating scandal that may wind up costing Volkswagen (DE:VOWG_p) nearly $20B, there's no clear evidence that CMI was attempting to be deceptive with its engines.
  • CMI shares have powered 56% higher YTD, even though margins are shrinking and analysts are not forecasting a rebound in revenue until 2018, and even then its total sales will be much closer to what the company generated in 2013 than last year.
  • "Even if you believe that all of Cummins's challenges will work themselves out, there are a lot of potential speed bumps looming for a company priced for no speed bumps," Bloomberg's Brooke Sutherland writes.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.