NEW YORK (TheStreet) -- PACCAR Inc. (PCAR) - Get PACCAR Inc Report stock was upgraded to "overweight" from a "neutral"at Piper Jaffray this morning. The firm also raised its price target to $68 from $65 on the stock.
Shares fell from $62.48 on August 19 to $55.90 on August 25. This sell-off was unjustified as the company does not have debt or exposure to China, oil or gas, Piper Jaffray says.
PACCAR is a truck maker that services a variety of customers across the globe through its manufacturing, parts distribution and financial services segments.
The company should be able to "offset a decline in Class 8 truck demand," according to Piper Jaffray. The firm expects a decline in growth until 2017 and a return to growth in 2018 as a base grows in Brazil and the European demand for trucks recovers.
Shares of PACCAR were up 3.13% at $57.63 in late afternoon trading on Wednesday.
Separately, TheStreet Ratings team rates PACCAR INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate PACCAR INC (PCAR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 15.4%. Since the same quarter one year prior, revenues rose by 11.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- PACCAR INC has improved earnings per share by 40.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PACCAR INC increased its bottom line by earning $3.82 versus $3.30 in the prior year. This year, the market expects an improvement in earnings ($4.70 versus $3.82).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 40.1% when compared to the same quarter one year prior, rising from $319.20 million to $447.20 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Machinery industry and the overall market, PACCAR INC's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: PCAR Ratings Report