Cummins Inc. (CMI) shares surged 5.08% during intraday trading on Friday, driven by a wave of positive analyst commentary and growing optimism about a recovery in the North American truck market.

Multiple Wall Street firms raised their price targets on the engine maker following its recent quarterly results. Truist Securities lifted its target to $703 from $653, Morgan Stanley increased its target to $675 from $600, and Jefferies raised its target to $645 from $630. Other firms including Bernstein, BofA Global Research, and UBS also issued upward revisions.

Analysts highlighted that fears of a slowdown in Cummins' power systems business were overdone, noting strong recent orders suggest the North American Class 8 truck market has bottomed and could recover this year. The company's power systems and distribution segments showed robust performance, with expectations that Cummins will continue to beat and raise guidance through the year.