UBS Upgrades PACCAR (PCAR) to Neutral

UBS analyst Steven Fisher upgraded PACCAR (NASDAQ: PCAR) from Sell to Neutral with a price target of $100.00 (from $81.00).

The analyst commets "We upgrade PCAR from Sell to Neutral. Our downside volume and margin catalyst has played out; PCAR is now guiding to a material decline in deliveries vs. 1H run rate, and management pushed out its expectation for a positive inflection in margins/demand in Q3. We now see risk/reward as balanced. There is risk that PCAR could be prematurely calling for improvement in the truck market later this year and PACCAR still thinks margins are bottomed here. Resolution of trade and other policies might still get pushed out into 2026, and there could be some additional costs that are not quite factored in for Q4. However, they did leave more room in their messaging for things to change, relative to earlier framing. We think the downside risks are balanced by the potential for stimulus to start working its way through the economy; bonus depreciation could help drive profitable fleets to step up some replacement buying; and the 232 trade case could drive a positive margin inflection."

For an analyst ratings summary and ratings history on PACCAR click here. For more ratings news on PACCAR click here.

Shares of PACCAR closed at $98.58 yesterday.

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