In their recent research trip to Brazil concerning building out their infrastructure, Barclays (NYSE:BCS) came away with several favorites in the machinery sector serving the build-out, including Caterpillar (NYSE:CAT), Cummins (NYSE:CMI), Deere (NYSE:DE), AGCO (Nasdaq:AGCO) and Eaton (NYSE:ETN)
The two favorites of Barclays in the entire group are Caterpillar and CMI.
Overall, Barclays said after talking to these and many other players in Brazilian infrastructure projects, the feeling is things are picking up and those companies with large exposure should reap strong rewards going forward, as expenditures are increasing.
Brazil has been overshadowed by China and to a lesser extent India recently, and it may be their time to shine as significant capital is generated from a variety of energy sectors and projects.
Other companies they met with in the equipment industry were Terex (NYSE:TEX) and Bucyrus International (Nasdaq:BUCY).
Showing posts with label Cummins. Show all posts
Showing posts with label Cummins. Show all posts
Tuesday, October 5, 2010
Thursday, July 15, 2010
Citigroup (NYSE:C) Prefers Cummins (NYSE:CMI) Over Caterpillar (NYSE:CAT)
Citigroup analysts maintained their "Hold" rating on Caterpillar (NYSE:CAT), while at the same time saying they prefer competitor Cummins (NYSE:CMI) in the heavy machinery sector.
“Following recent positive revisions to Cummins (NYSE: CMI) estimates, we raise our 2010 EPS est. on CAT to $3.25 (from $3.05) largely on better near-term growth in key emerging markets. Note key competitor, Komatsu, today raised its FY3/11 sales forecast by 3% (entirely in its 1H ending 9/30; 2H was left unchanged), and noted demand for construction and mining equipment is currently running well ahead of its previous outlook in Asian and Latin American markets.”
“CMI Remains Our Favorite Heavy Machinery Play – While both CAT and CMI stand to benefit from emerging market growth theme, we continue to prefer shares of CMI (today raised dividend 50%) over CAT, as we expect CMI’s key developed world end-markets (notably N.A. heavy truck) to rebound more quickly than CAT,” said Citi.
Even so, Citigroup did raise their price target on Caterpillar from $68 to $71.
“Following recent positive revisions to Cummins (NYSE: CMI) estimates, we raise our 2010 EPS est. on CAT to $3.25 (from $3.05) largely on better near-term growth in key emerging markets. Note key competitor, Komatsu, today raised its FY3/11 sales forecast by 3% (entirely in its 1H ending 9/30; 2H was left unchanged), and noted demand for construction and mining equipment is currently running well ahead of its previous outlook in Asian and Latin American markets.”
“CMI Remains Our Favorite Heavy Machinery Play – While both CAT and CMI stand to benefit from emerging market growth theme, we continue to prefer shares of CMI (today raised dividend 50%) over CAT, as we expect CMI’s key developed world end-markets (notably N.A. heavy truck) to rebound more quickly than CAT,” said Citi.
Even so, Citigroup did raise their price target on Caterpillar from $68 to $71.
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