Following news earlier this week that truck sales were a bright spot in March U.S. auto sales, UBS Securities analyst Henry Kirn today raised his rating on shares of truck engine maker Cummins (CMI) to “Buy” from “Neutral,” writing that the business is showing the first signs of improvement in four years.
Cummins shares closed up $1.04, or 1.6%, today to $66.07.
Kirn writes that UBS’s survey of trucking firms show 45% expect to make purchases this year, though volumes will still be below 2009. 63% expect to buy in 2011.
And Cummins apparently tops the charts in truckers’ picks:
Cummins was cited by 40% of truckers as the post-2010 engine that they were most likely to buy. Detroit Diesel, Volvo, Navistar and PACCAR engines were named by 26%, 14%, 11% and 10% of truckers, respectively.
In related news, Reuter’s Soyoung Kim writes that the National Highway Traffic Safety Administration has started a probe of potential safety issues with the braking system on General Motors trucks of model years 1999 through 2003. That could affect up to 6 million vehicles out there, writes Kim. The investigation comes after the Administration received 110 consumer complaints that brakes in Chevy and GMC trucks and SUVs “made it difficult for them to stop the vehicles.”
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