Cummins shares will rise because of the engine maker's strong market position and earnings growth, according to Piper Jaffray.
The firm raised its rating to overweight from neutral for Cummins shares, predicting rising profitability for the company next year.
"We think consensus already captures a coming peak in Class 8 [heavy classification] truck demand, but fails to reflect margin expansion due to a mix-shift toward off-highway products," analyst Alexander Potter said in a note to clients Thursday. "The fading impact of warranty charges are also a tailwind."