The higher price target comes after the Bellevue, WA-based truck manufacturer reported better-than-expected earnings for the 2016 first quarter yesterday.
The company posted adjusted earnings of 99 cents per diluted share, topping analysts' estimates of 96 cents per share. Revenue was $4.01 billion, lower than expectations of $4.12 billion.
"A major driver of 1Q results was PACCAR's gross margin (+90 bps to 14.9%), which held up against the declining revenue (-11.8% year-over-year)," the firm wrote in a note.
The resiliency of the increasingly diversified PACCAR model continues to surprise BMO to the upside.
"We continue to believe that we will have a better entry point to purchase shares in this high-quality truck manufacturer," the firm added.
Shares of PACCAR are advancing by 1.26% to $59.67 at the start of trading on Wednesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.
The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PCAR