• In recent days, multiple research firms, including Truist Securities, Barclays and Zacks, have upgraded Cummins and improved their earnings outlook, citing benefits from tightening emissions regulations and robust demand in its power solutions business.

• These upgrades highlight how Cummins’ growing role in data center backup power and preparation for EPA 2027 engine standards are becoming central to its long-term growth story.

• With analysts now emphasizing Cummins’ data center power exposure, we’ll examine how this shifting focus could reshape the company’s investment narrative.

Trump has pledged to “unleash” American oil and gas and these 22 US stocks have developments that are poised to benefit.

To own Cummins, you need to believe its shift from a truck-centric engine supplier to a broader power solutions and data center partner will offset freight market weakness and transition risks. The recent wave of analyst upgrades reinforces data center power and EPA 2027 as the key near term catalysts, while the biggest risk remains a deeper or more prolonged downturn in North American truck demand. These ratings do not materially change those fundamentals.

Among recent developments, Barclays’ upgrade to “Overweight” with a higher price target stands out, as it directly ties Cummins’ upside to EPA 2027 emission rules and continued strength in its power segment. That call lines up with the idea that growing data center and backup power demand could help cushion the cyclical drag from weaker heavy duty truck orders and provide a bridge until the next engine replacement cycle really starts to bite.

Yet, while power systems and data centers are helping today, investors should also be aware of what happens if North American truck demand worsens and…

Read the full narrative on Cummins (it’s free!)

Cummins’ narrative projects $40.6 billion revenue and $4.3 billion earnings by 2028. This requires 6.4% yearly revenue growth and about a $1.4 billion earnings increase from $2.9 billion today.

Uncover how Cummins’ forecasts yield a $521.57 fair value, a 3% upside to its current price.

Five fair value estimates from the Simply Wall St Community span roughly US$280 to US$640 per share, showing how far apart individual views can be. Against that backdrop, the emphasis many analysts now place on data center power demand and EPA 2027 regulations could become a key swing factor in how Cummins’ future earnings power is assessed.

Explore 5 other fair value estimates on Cummins – why the stock might be worth 45% less than the current price!