Bernstein Reiterates Outperform Rating on PACCAR with $138 Target

Bernstein analyst Chad Dillard has reaffirmed an "Outperform" rating for PACCAR (PCAR), maintaining a price target of $138 per share. The endorsement follows the company's 2026 analyst day, where management highlighted a strategic shift toward its high-margin "Parts" segment. This strategy aims to mitigate the cyclical nature of the trucking industry, with the parts business potentially accounting for two-thirds of total profits by 2030. Analysts at Bernstein argue that the stock's current valuation at 17 times earnings is undervalued given the company's long-term growth prospects. Furthermore, earnings per share (EPS) are projected to grow by 33% by 2030 as these strategic initiatives take hold. The firm remains optimistic about PACCAR's ability to deliver consistent returns through its diversified revenue streams.