Credit Suisse expects PACCAR to pause outperformance
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PACCAR Inc. (NASDAQ:PCAR) stock was cut to Neutral at Credit Suisse as the bank sees its recent outperformance as unlikely to continue unabated.
The Swiss bankâs analysts indicated that âthe best is behind usâ after a nearly 20% jump for the stock in the fourth quarter of 2022 and continued strength into 2023. As recession risks loom, the trucking industry is expected to be a challenging space in 2023 and an unlikely spot to find outperformance.
âWhile we believe this truck downturn to be less severe versus history and view PCAR as likely to successfully navigate as usual, we believe PCAR cannot continue to outperform broader machinery with orders, truck production, and earnings decelerating in [the second half of 2023] and more significantly in 2024,â the team concluded.
As such, the stock was downgraded to Neutral from a prior Outperform and its price target was cut to $105 from $107. Shares of the Washington-based industrial company declined modestly in premarket action on Thursday.
Read more on Morgan Stanleyâs more optimistic view.