Professional
Added to YB: 2024-02-28
Pitch date: 2024-02-24
CMI [bullish]
Cummins Inc.
+100.4%
current return
Author Info
Company Info
Cummins Inc. offers various power solutions worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera.
Market Cap
$43.7B
Pitch Price
$254.51
Price Target
288.68 (-43%)
Dividend
2.29%
EV/EBITDA
8.90
P/E
15.78
EV/Sales
1.50
Sector
Machinery
Category
special_situation
Cummins: Odd Lot “Arbitrage” Opportunity
CMI special situation: Exchange offer for Atmus Filtration spin-off aims to repurchase undervalued CMI stock at 13 P/E (below 15x median) after $2B DOJ/CA lawsuit charge. Expect 3.5%+ buyback at 7% discount ($107.53 Atmus per $100 CMI tendered). Proration risk mitigated for <100 share holders. Potential $1950 profit buying 99 CMI (~$25.8K), tendering by 3/13, selling 1256 Atmus (~$27.8K).
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