UPDATE: Stifel Initiates Coverage On Cummins Inc. On Good Potential Upside

In a report published Wednesday, Stifel analyst Michael Baudendistel initiated coverage on Cummins Inc. (NYSE: CMI) with a Buy rating and $160.00 price target.

In the report, Stifel noted, “We are initiating coverage of Cummins Inc. with a Buy rating on the company's common shares. We are establishing a 12-month target price of $160 (or 13.0x our 2016 EPS estimate of $12.30) that provides 18% potential upside relative to Monday's closing price, and 20% potential upside after including the company's dividend yield, which is sufficient for a Buy rating under the Stifel rating system.”

Cummins Inc. closed on Tuesday at $136.13.