Morgan Stanley Lifts Paccar Price Target to $109 on Model Updates
Morgan Stanley raised its Paccar price target to $109 from $102 after updating machinery sector models while keeping an Equal Weight rating. Paccar delivered Q4 revenue of $6.8B and net income of $557M, full-year revenue $28.4B and adjusted net income $2.64B, its fourth-most profitable year and record support-division revenues.
1. Analyst Price Target Increase
Morgan Stanley raised Paccar’s price target to $109 from $102 after revising its North American machinery sector models and reiterated an Equal Weight rating on the shares.
2. Q4 and Full-Year Financial Results
Paccar reported Q4 2025 revenue of $6.8 billion with net income of $557 million, and full-year revenue of $28.4 billion with adjusted net income of $2.64 billion, marking its fourth-most profitable year in company history.
3. Division Performance and Tariff Advantage
Paccar Parts and Paccar Financial Services both achieved record revenues for the quarter and full year, and domestic manufacturing in the U.S., Canada and Mexico provided a competitive edge under new Section 232 truck tariff policies.
4. 2026 Market Outlook
CEO Preston Feight forecasts U.S. and Canadian Class 8 truck shipments of 230,000–270,000 units in 2026, supported by economic growth, clearer regulatory conditions, improving freight trends, and DAF’s continued expansion in Europe and South America.