NEW YORK (TheStreet) -- Shares of Paccar (PCAR) are gaining by 0.68% to $63.99 after analysts at BMO Capital Markets upgraded the company to "market perform" from "underperform" and maintained their $60 price target. Paccar is a manufacturer of medium and heavy-duty trucks.
"We are raising our rating following numerous recent checks into the commercial truck market including a trip last week to PACCAR's engine facility in Columbus, Mississippi," analysts said.
Key highlights include their expectation that any potential downturn in the North American class 8 truck market over the next year to year and a half is relatively modest versus prior cycles while the European market appears set for a long-waited recovery, according to the analyst note.
Analysts are also attracted to the company's pristine balance sheet, with a substantial cash position and excellent management track record.
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, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."