Stifel Boosts PT on Navistar (NAV) to $14 Amid Volkswagen Deal; Maintains 'Sell' Rating
- Wall Street falls as investors ready for Trump's inauguration
- IBM (IBM) Tops Q4 EPS by 13c, FY17 EPS Guidance Beats Consensus
- American Express (AXP) Misses Q4 EPS by 7c, FY17 EPS Guidance Tops Views at Mid-Poinit
- Skyworks Solutions (SWKS) Tops Q1 EPS by 3c, Offers Q2 Guidance, Announces Buyback
- After-Hours Stock Movers 01/19: (SWKS) (QRVO) (NVAX) Higher; (AFMD) (SGYP) (IBM) Lower (more...)
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Stifel lifts its price target on Sell-rated Navistar International (NYSE: NAV) from $10 to $14 following news of a new collaboration with Volkswagen.
Analyst Michael Baudendistel commented today:
It is clear to us that the news on Monday and Tuesday is a long-term positive development for Navistar and a negative for Cummins. We are increasing our target price on NAV shares from $10 (or 8.0x our 2018 EBITDA estimate of $650 million) to $14 (or 8.5x our 2018 EBITDA estimate of $650 million) to reflect the lower liquidity and solvency risk following the inflow of cash and alignment with a better-capitalized company.
In addition, we believe the next revision to our forward estimates is likely to be up on the aforementioned purchasing and R&D synergies; we will keep our forward estimates unchanged for now since the company reports earnings in two days and we expect additional detail to be provided at that time.
Our Sell rating on Navistar reflects our view that orders for heavy and medium duty equipment are likely to disappoint during the fall order season in light of the pricing pressure in truckload rates, among other factors.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Stifel Resumes Target (TGT) at Hold
- Deckers Outdoor (DECK) Bear Poser at Susquehanna Modestly Lifts Numbers
- Goldman Sachs (GS) PT Raised to $256.00 at Oppenheimer Following 4Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesStifel, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!