UPDATE: Loop Capital Upgrades Navistar International (NAV) to Buy

(updating comment)

Loop Capital analyst Jeffrey Kauffman upgraded Navistar International (NYSE: NAV) from Hold to Buy with a price target of $35.00.

The analyst comments " Despite a very difficult Covid-impacted quarter, management reaffirmed its belief that its Navistar 4.0 plan is still achievable by 2024, which implies 11-12% EBITDA margins and earnings potential in the $6-7 range over the longer term. This would imply valuations roughly triple the current share price. If management loses faith in its longer-term objectives, there remains a bid by TRATON to purchase the company for $35 a share today. Despite the weak truck environment, there is much to like at NAV –and we possibly will have seen the worst of the pullback in the company's core markets during fiscal 2020. The longer-term view focuses on growth via a combination of modest market share gains, new products and markets, and new investments. These should improve the company's operations, cost structure and ability to compete on a technology and product quality basis. Breaking down the 2022 and 2024 targets (analysis in this report), the implication is a multi-year share price potential of $80+ in 2023/2024 if successful."

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 $27.93 yesterday.

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