Paccar’s stock edges up into record territory after Argus analyst turns bullish, lifts profit views

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Shares of Paccar Inc. nudged higher into record territory Thursday, as Argus Research analyst Bill Selesky turned bullish on the truck maker and distributor in the wake of better-than-expected third-quarter results. The stock was up 0.2% in midday trading, and was just above the Oct. 19 record close of $91.06. Selesky raised his rating to buy from hold, as his $108 stock price target is about 19% above current levels. The company reported on Tuesday a third-quarter profit and revenue that beat expectations, and provided an upbeat full-year outlook. “After closing its manufacturing plants during the first phase of the pandemic, the company has resumed operations and seen improved order activity in recent months,” Selesky wrote in a note to clients. “We expect Paccar to generate significantly stronger top- and bottom-line growth in the coming quarters and are raising our EPS estimates for both this year and next.” He raised his 2020 EPS estimate to $3.51 from $3.30 and his 2021 estimate to $4.95 to $4.75. The stock has rallied more than 15% year to date, while the S&P 500 has gained 6.3%.
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