Wachovia Upgrades Navistar International (NAV) to Outperform
NAV Hot Sheet
Rating Summary:3 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Wachovia upgrades Navistar International (NYSE: NAV) from Market Perform to Outperform. Valuation range $60-63.
Wachovia analyst says, "Our upgrade is based on expected significant earnings reacceleration in FY2011 after a beneath-consensus FY2010 absent any benefit from potential military contracts into which we have very limited visibility. Establishing EPS estimates, with FY2009E EPS of $3.25 (versus consensus' $2.97), 2010E of $2.15 (versus consensus' $5.11) and 2011E of $5.60. We are not including benefit from military contracts, and NAV could potentially be in a position to achieve consensus if it wins around 50% of the M-ATV contract expected to be announced June 26, 2009. Absent this, consensus appears to be too high."
"Given the significant earnings potential with upside and downside risks, we are looking through potential short-term volatility due to the M-ATV award announcement, a low-quality balance sheet, and risks associated with a portion of the company’s post-2010 engine strategy."
To see more analyst ratings on NAV Click Here.
Navistar International Corporation (NIC) is a holding company that operates through its principal operating subsidiaries, Navistar, Inc. and Navistar Financial Corporation (NFC).
Wachovia analyst says, "Our upgrade is based on expected significant earnings reacceleration in FY2011 after a beneath-consensus FY2010 absent any benefit from potential military contracts into which we have very limited visibility. Establishing EPS estimates, with FY2009E EPS of $3.25 (versus consensus' $2.97), 2010E of $2.15 (versus consensus' $5.11) and 2011E of $5.60. We are not including benefit from military contracts, and NAV could potentially be in a position to achieve consensus if it wins around 50% of the M-ATV contract expected to be announced June 26, 2009. Absent this, consensus appears to be too high."
"Given the significant earnings potential with upside and downside risks, we are looking through potential short-term volatility due to the M-ATV award announcement, a low-quality balance sheet, and risks associated with a portion of the company’s post-2010 engine strategy."
To see more analyst ratings on NAV Click Here.
Navistar International Corporation (NIC) is a holding company that operates through its principal operating subsidiaries, Navistar, Inc. and Navistar Financial Corporation (NFC).
You May Also Be Interested In
- UPDATE: Williams Financial Group Upgrades Semtech Corp. (SMTC) to Buy; Check Again...Quarter Was Fairly Strong
- Goldman Sachs Cuts Numbers on Tiffany & Co. (TIF) after Weak Q1, Guidance
- UPDATE: UBS Upgrades Westlake Chemical (WLK) to Neutral; Fairly Valued Now
Create E-mail Alert Related Categories
UpgradesRelated Entities
WachoviaSign 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!
