Shares of engine maker Cummins Inc. surged 6% after the company beat earnings forecasts for the first quarter and raised its full-year outlook. CFRA upgraded the stock to strong buy from buy on the news and raised its price target to $200 from $166. That is equal to 24% upside from its current trading level. Cummins said it had net income of $396 million, or $2.36 a share, in the first quarter, up from $321 million, or $1.87 a share, in the year-earlier period. Revenue rose 7% to $4.6 billion. The FactSet consensus was for EPS of $1.80 and revenue of $4.1 billion. “Stronger demand from construction and mining customers and higher sales from a distributor acquisition in the fourth quarter of last year, more than offset the impact of weaker truck production in North America,” the company said in a statement. CFRA said it expects that trend to continue. Cummins is now expecting full-year revenue to climb 4% to 7%, up from prior guidance of flat to down 5%. Shares have gained 18% in 2017, while the S&P 500 has gained 6.7%.
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