UBS Raises Price Target on Navistar (NAV) to $20 Following VW Investment
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
UBS reiterated a Neutral rating on Navistar International (NYSE: NAV), and raised the price target to $20.00 (from $11.00), following recent VW investment. UBS believes that the investment provides a vote of confidence to NAV's shareholders and customers and raised the price target to reflect the reduced risk.
Analyst Steven Fisher commented, "While NAV continues to face challenges from a weak truck market, and is still restructuring, we think the recent VW investment has reduced credit risk. Near-term, we expect a weak truck market in 2017 to offset some of the improvements made to date, resulting in flat YoY EBITDA. Industry OEMs have discussed pricing pressure, and we expect increased competition while the market retrenches. In FY18 we think NAV may see some benefit from synergies with VW, and we think the VW and Cummins partnerships should help improve market share. We think NAV could see FY18 EBITDA growth, bolstered by our expectation for 2018 end market growth in Class 8 trucks."
Shares of Navistar International closed at $19.30 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Cuts Price Target on Restoration Hardware (RH) to $34 Following 3Q
- KLR Group Cuts Price Target on Bill Barrett (BBG) to $9; Reiterates Buy
- FBR Capital Raises Price Target on Methode Electronics (MEI) Following Better Than Expected 2Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
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!