Morgan Stanley Forecasts Strong Price Appreciation for PACCAR (NASDAQ:PCAR) Stock

PACCAR (NASDAQ:PCAR) had its target price boosted by equities researchers at Morgan Stanley from $109.00 to $113.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Morgan Stanley’s price objective indicates a potential downside of 10.46% from the stock’s previous close.

A number of other analysts also recently issued reports on the company. Weiss Ratings downgraded PACCAR from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, May 21st. JPMorgan Chase & Co. boosted their price objective on shares of PACCAR from $140.00 to $155.00 and gave the company an “overweight” rating in a research report on Monday, July 13th. Wells Fargo & Company set a $125.00 target price on shares of PACCAR and gave the company an “equal weight” rating in a research note on Wednesday, April 29th. Evercore set a $139.00 target price on shares of PACCAR in a report on Monday, May 11th. Finally, Citigroup reaffirmed a “neutral” rating and set a $125.00 price target (down from $130.00) on shares of PACCAR in a research note on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, PACCAR currently has an average rating of “Hold” and an average price target of $124.18.

PACCAR Price Performance

NASDAQ:PCAR opened at $126.20 on Friday. The firm has a market capitalization of $66.42 billion, a price-to-earnings ratio of 26.85, a PEG ratio of 1.16 and a beta of 0.97. PACCAR has a 1 year low of $92.25 and a 1 year high of $131.88. The business has a 50 day simple moving average of $117.32 and a 200-day simple moving average of $119.60. The company has a debt-to-equity ratio of 0.52, a current ratio of 3.11 and a quick ratio of 2.91.

PACCAR (NASDAQ:PCAR) last announced its earnings results on Tuesday, April 28th. The company reported $1.15 EPS for the quarter, hitting analysts’ consensus estimates of $1.15. The firm had revenue of $6.78 billion during the quarter, compared to analysts’ expectations of $6.44 billion. PACCAR had a return on equity of 12.81% and a net margin of 8.91%.The company’s quarterly revenue was down 9.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.46 EPS. Equities analysts forecast that PACCAR will post 5.65 EPS for the current year.

Hedge Funds Weigh In On PACCAR

A number of institutional investors have recently modified their holdings of the stock. Nomura Asset Management Co. Ltd. lifted its position in shares of PACCAR by 2.4% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 413,489 shares of the company’s stock worth $45,281,000 after purchasing an additional 9,524 shares during the period. Nordea Investment Management AB increased its holdings in PACCAR by 12.6% during the fourth quarter. Nordea Investment Management AB now owns 122,451 shares of the company’s stock valued at $13,487,000 after buying an additional 13,668 shares during the period. Merit Financial Group LLC increased its holdings in PACCAR by 165.8% during the fourth quarter. Merit Financial Group LLC now owns 24,319 shares of the company’s stock valued at $2,663,000 after buying an additional 15,169 shares during the period. Vanguard Group Inc. raised its stake in PACCAR by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 63,475,226 shares of the company’s stock worth $6,951,172,000 after buying an additional 363,782 shares in the last quarter. Finally, Swiss Life Asset Management Ltd raised its stake in PACCAR by 118.2% in the fourth quarter. Swiss Life Asset Management Ltd now owns 638,688 shares of the company’s stock worth $69,943,000 after buying an additional 345,937 shares in the last quarter. 64.90% of the stock is owned by hedge funds and other institutional investors.

About PACCAR

PACCAR Inc is a global technology leader in the design, manufacture and customer support of light-, medium- and heavy-duty commercial vehicles. The company’s products are marketed under well-known brand names including Kenworth, Peterbilt and DAF and span vocational and long-haul applications. PACCAR’s core business includes vehicle engineering and assembly as well as the supply of components and proprietary powertrain systems designed to meet regulatory and customer performance requirements.

In addition to truck manufacturing, PACCAR operates a comprehensive aftermarket parts business, distributes used trucks and provides commercial vehicle financing and leasing through its financial services operations.