CMI: Adding CMI to 3Q26 Tactical Ideas List

研报英文原文证据摘录

CMI: Adding CMI to 3Q26 Tactical Ideas List

Equity Research

Company Update — July 1, 2026

Machinery, Industrials & Environmental Services

Cummins Inc.

Adding CMI to 3Q26 Tactical Ideas List Overweight

Price Target: $874.00

Our Call Ticker CMI

Upside/(Downside) to Target 22.6%

We are buyers of CMI entering 3Q: (i) $20 bn TAM expansion from prime power awards; (ii)

$2 incremental EPS from EPA 2027; (iii) tight US truck spot market, and (iv) beatable 2026 Price (06/30/2026) $712.99

margins. 52 Week Range $322.45 - 737.76

Market Cap (MM) $98,963

We are buyers of CMI (remains on our Tactical List) where we see: (i) $20 bn expanded Enterprise Value (MM) $103,467

TAM following recent prime power contract awards and scope for additional work in Average Daily Value (MM) $700

Alberta, (ii) structurally improving earnings from EPA 2027 that adds $2 in EPS (Exhibit Dividend Yield 1.0%

1), (iii) tight US truck spot market (Exhibits 2-5), and (iv) beatable margins (WFSe EPS

+3% vs. consensus in 2026E and 8% in 2027E with upside). $ (Dec) Q1 Q2 Q3 Q4 FY

EPS

Key 3Q26 Catalysts: 2026E 6.15 A 7.39 E 8.12 E 8.54 E 30.18 E

• Prime power awards and scope for additional work in Alberta. CMI will supply a 2027E 7.69 E 8.47 E 9.07 E 9.49 E 36.87 E

series of natural gas generator sets for a behind-the-meter prime power microgrid Source: Company Data, Wells Fargo Securities estimates, and Factset.

NA = Not Available, NC = No Change, NE = No Estimate

serving Circe Energy's Texas HPC data center, with deliveries scheduled 2026 through

2030. Based on commentary from our conference, we see potential for CMI to win Jerry Revich, CFA

additional prime power contracts in Alberta, Canada, where 6–8 projects totaling 3–4 Equity Analyst | Wells Fargo Securities, LLC