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Cummins Inc. is rated a Hold, as recent price declines have brought valuation to fair, not cheap, levels despite upwardly revised 2026 guidance.

CMI's margin and earnings growth through 2026 are heavily reliant on Power Systems, driven by data center genset demand, but new capacity may erode pricing power.

The outlook for the truck segment is stable, with regulatory changes likely to smooth the transition to new engine standards but that limits upside from content gains.

At 17.8x 2026 earnings and a 1.7% yield, CMI offers fair value; a compelling entry point is closer to $465, with risks tied to data center demand and competitive capacity.

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Cummins Inc. ( CMI ) is an Indiana-based manufacturer of diesel and natural gas engines, the parts that attach to them and the generator sets that provide power for data centers during a power outage.…