Piper Jaffray Downgrades Navistar International (NAV) to Neutral

Piper Jaffray downgraded Navistar International (NYSE: NAV) from Overweight to Neutral with a price target of $11.50 (from $14.00).

Analyst Alexander Potter commented, "We are lowering our recommendation to Neutral and cutting our price target to $11.50, down from $14 previously. NAV has maneuvered expertly through a period that would have probably driven lesser companies into bankruptcy. We think the management team deserves credit. But NAV remains the highest beta, most heavily levered stock in our coverage, and we think the company's margin for error is thin. NAV's Europe exposure is inconsequential - so direct Brexit-related risks are low - but recently declining orders in the U.S. truck market (not to mention a general risk-off attitude) will probably lead investors to look for "safer" options."

The firm cut FY 2016 EPS from $0.74 to $0.08 and FY 2017 EPS from $1.80 to $0.77.

For an analyst ratings summary and ratings history on Navistar International click here. For more ratings news on Navistar International click here.

Shares of Navistar International closed at $10.87 yesterday.

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