Truist Securities starts PACCAR stock with hold, $117 target

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Truist Securities starts PACCAR stock with hold, $117 target
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On Thursday, Truist Securities initiated coverage on shares of PACCAR Inc (NASDAQ: PCAR ), a prominent manufacturer of heavy-duty trucks, with a Hold rating and a price target of $117.00. This valuation reflects the firm's cautious stance on the company's near-term prospects in the face of an anticipated industry downturn.

The coverage launch comes at a time when the global heavy truck production is expected to face significant declines. Truist Securities forecasts a double-digit percentage decrease in truck production in both the United States and Europe after three consecutive years of robust activity in the sector.

Despite the predicted downturn, the firm anticipates a recovery, driven by the upcoming 2027 emissions standards. These regulations are expected to stimulate a prebuy period in 2025-2026 as customers rush to purchase commercial vehicles before the introduction of more expensive but emissions-compliant models.

Truist Securities' cautious outlook is based on waiting for clearer signs of earnings reaching their lowest point or evidence of an uptick in truck builds as the prebuy window approaches. Until such indicators emerge, the firm prefers to maintain a neutral position on PACCAR's stock.

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