UBS Raises Price Target on Navistar (NAV) to $20 Following VW Investment
- Netflix, Inc. (NFLX) Tops Q4 EPS by 1c; Subs Beat Views
- S&P 500 ends up slightly with boost from financials; Netflix up late
- Nestle Said Examining Takeover of Mead Johnson (MJN) - Source
- La Quinta Holdings (LQ) Gains on Plan to Split in Two
- Fed's Yellen says 'makes sense' to gradually raise interest rates
Get inside Wall Street with StreetInsider Premium. Claim your 2-week 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
- Target (TGT) PT, Estimates Cut at Buckingham Research Following Miss
- UPDATE: Oppenheimer Starts Fortive (FTV) at Perform
- UBS Cuts Price Target on Morgan Stanley (MS) to $49; Reiterates Buy
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!