Aegis Capital Starts Navistar International (NAV) at Buy

Aegis Capital initiates coverage on Navistar International (NYSE: NAV) with a Buy rating and a price target of $36.00.

Analyst Jeffrey Kauffman commented, "We are initiating coverage of Navistar Corporation with a BUY rating and $36 price target, which suggests a 16% appreciation from current levels. We are of the view that management has done most of what it can to improve the company’s financial and competitive position – non-core operations have been closed down or sold, alliances have been formed with key OEM partners to improve product quality and ensure longer term liquidity, and several rounds of internal restructuring have reduced overhead and improved the manufacturing cost structure. Now, all the company is waiting on is the return of the North American Class 8 truck cycle, and market share gains from the recapture customers in their core end markets. We have been constructive on these shares over the past two years, based on our view that despite the rolling over the North American Class 8 truck market, management was taking all the right actions longer term to improve the company’s liquidity and competitive position, and that they would be a survivor with the potential to earn $3.00-$4.00 in EPS again longer term."

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 $30.93 yesterday.

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