Morgan Stanley sends clear Cummins stock message amid data center boom

Cummins (CMI) utilized its 2026 Analyst Day successful New York connected May 21 to propulsion guardant a communicative it has been telling for 2 years: it sells engines, but it progressively sells power.

The Columbus, Indiana institution raised its semipermanent targets crossed the board, and Morgan Stanley utilized the infinitesimal to reiterate its bullish telephone connected the stock.

Shares closed astatine $638.78 connected the time of the lawsuit and traded adjacent $653 the pursuing session, per Google Finance data, sitting conscionable beneath a 52-week precocious of $718.08.

For investors weighing a near-trough motortruck rhythm against a structural AI powerfulness story, the firm's enactment offers a utile frame.

What Morgan Stanley is telling Cummins shareholders

Morgan Stanley reiterated an Overweight standing connected Cummins with a $752 terms target, implying astir 20% upside from the May 21 close.

Analyst Angel Castillo and squad wrote that the Analyst Day bolstered their condemnation that Cummins is "an charismatic concern accidental with aggregate ways to win."

The steadfast raised its FY27 adjusted EPS estimation to $34.88 (from $33.85) and FY28 to $40.58 (from $38.18).

Three things down the Morgan Stanley call:

• A near-trough motortruck cycle that should crook into a tailwind by 2027 arsenic EPA pre-buys clear.

• Secular AI-driven demand for backup and premier powerfulness successful hyperscale information centers.

• Capacity expansion the steadfast views arsenic blimpish against apt real-world gross per gigawatt.

It is worthy noting Morgan Stanley discloses an investment-banking narration with Cummins, a modular struggle to support successful mind.

Why Cummins' 2030 targets conscionable got a superior upgrade

In its Analyst Day disclosures, Cummins raised each cardinal 2030 number:

• Revenue: $45–$50 billion, up from $43–$48 billion

• EBITDA margin: supra 20%, up from 17–18%

• Data halfway revenue: $9 billion+, up from $3–$4 billion

For context, Cummins generated $33.7 cardinal successful gross successful 2025, according to its 2025 yearly report. The caller midpoint implies astir a 3rd much gross successful 4 years.

The information halfway fig is the headline. Roughly tripling that enactment point by 2030 reframes Cummins arsenic an AI infrastructure name, not a axenic motortruck supplier.

CEO Jennifer Rumsey told Fox Business the institution is positioning to powerfulness a question of information halfway buildouts globally.

The $450 cardinal capableness stake down the communicative

To backmost the targets, Cummins announced a $450 cardinal investment to grow high-horsepower capableness by 20 gigawatts, lifting full nameplate capableness to 55 GW by 2030.

That builds connected a anterior $200 million, 9 GW expansion. The caller capableness uses the existing manufacturing footprint and starts ramping meaningfully successful 2027.