The firm sees 20% upside in CMI shares, citing AI-driven data center demand and a recovering truck cycle.
Morgan Stanley reiterated its Overweight rating on Cummins (CMI) and lifted its price target to $752, up from a prior level, after the company’s 2026 Analyst Day. The new target implies roughly 20% upside from the May 21 close of $638.78, with shares trading near $653 the following session.
Cummins raised long-term financial targets, prompting Morgan Stanley to increase its FY27 adjusted EPS estimate to $34.88 from $33.85 and its FY28 estimate to $40.58 from $38.18. The firm highlighted three key drivers: a near-trough truck cycle expected to rebound by 2027, secular AI-related power demand for data centers, and conservative capacity expansion plans.
The stock remains just below its 52-week high of $718.08, reflecting investor optimism amid the company’s pivot toward power solutions. Morgan Stanley’s note underscores the dual opportunity in traditional engines and emerging power markets.