Benzinga | Oct 5, 2021 03:29PM EDT

Deutsche Bank Maintains, Wolfe Research Upgrades PACCAR Rating - Read Why

* Deutsche Bank analyst Nicole DeBlase lowered PACCAR Inc's (NASDAQ:PCAR) price target to $85 (implying an upside of 3.9%) from $93 and maintained a Hold rating on the shares after the company preannounced Q3 deliveries.

* DeBlase mentions, while management had not previously provided Q3 delivery guidance, they noted that production was projected flattish quarter-over-quarter.

* She further adds it is unclear from the release whether production is also falling short of expectations. She thinks that this is likely.

* Wolfe Research analyst Scott Group upgraded PACCAR to Outperform from Peer Perform and price target of $96, implying an upside of 17.3%.

* The analyst expects supply chain disruptions to continue "well into" 2022.

* He says Q3 may represent the peak of supply chain headwinds, and if the headwinds do start to ease, he expects the laggards in transports this year to outperform again.

* Price Action: PCAR shares are trading higher by 4.11% at $82.02 on the last check Tuesday.