the analyst behind the downgrade is Stephen Volkmann.. according to TipRanks he is a pretty accurate one and has pretty good statistics (They measure his performance since 2009)
1) his average Buy/Sell recommendations outperformed the S&P500 by 12.3% on average.
2)he has a success rate of 73% (way over the average analyst)
3) he is ranked the highest ranked analyst covering CMI.
So unlike many other analysts opinion, i trust this one.
I recall a few of Volkmann's reports/comments on CMI over the past couple years and they seem to be inconsistent. I don't put much weight into the "luck" of analysts' predictions, there is so much more behind what they say and when they say it that has less to do with an actual company than it does their business model.
I guess if I were looking at CMI right now, I probably would be regretting not getting in under $100, this thing has legs. I imagine there will be those trying to bring it down temporarily to make for a better buy in price. That said, bring it on, I actually regret not buying more than I did when it was in the $80's this last go around.
When it comes to trading and/or investing, I try to keep perspective on what my agenda and outlook is for my finances. They usually aren't the same as these analysts, fun managers or whatever other spin doctor in the bloated world of investing advisement. My main concern with any of such said advice is, how many sheep are listening and following it?
whether you should have bought does not say anything about the stock
Their sales are down
trucks are not selling in Us
If trucks go to ng yes Cummins will get a lot
But their is not supposed to be large amount and number of engine sales will not increase ,just a switch
China is where its happening
Weichai is doing well in China
Volvo has just partnered with the largest engine producer of truck engines
What has Cummins done
They may ship some from Us
You can not compete in China with a US product ,period
And who does export and can compete
So little increase in Us and no ng in China why should any one own the stock?