Gabelli Encourages Investors to Buy Navistar International (NAV), Price Target Calls for 42% Upside
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Price: $44.50 --0%
Rating Summary:
9 Buy, 14 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 14 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Gabelli is maintaining its Buy rating and $82 price target on shares of Navistar International (NYSE: NAV), and encourages investors to buy on the dip following the release of its Q2 earning.
The company released its Q2 earnings below expectations due to weaker than expected margins that were caused by increased warranty expenses that totaled $27 million or $0.34 per share.
As a result of a lower than expected tax rate, NAV raised it guidance range from $5.00-$6.00 to $5.50-$6.00. The firm remains skeptic in the company's ability to reach its guidance as it would have to earn $4.30-$4.80 in the second half to match it.
During the quarter sales and market share came inline with expectations. Truck sales rose 23 percent to $2.3 billion as engine sales grew by 41.1 percent to $955 million.
NAV forecasts that by the second half start-up costs will have decrease substantially,
reducing if not eliminating the 2011 headwind altogether. The company made no change to its sales expectation of $13.6-$14.3 billion, but raised the low end of its manufacturing profit guidance range from $962 million to $1.07 billion to $995 million to $1.07 billion. NAV’s manufacturing cash expectations remained unchanged at $1.2-$1.4 billion.
For more ratings news on Navistar International click here and for the rating history of Navistar International click here.
Shares of Navistar International closed at $58.90 yesterday.
The company released its Q2 earnings below expectations due to weaker than expected margins that were caused by increased warranty expenses that totaled $27 million or $0.34 per share.
As a result of a lower than expected tax rate, NAV raised it guidance range from $5.00-$6.00 to $5.50-$6.00. The firm remains skeptic in the company's ability to reach its guidance as it would have to earn $4.30-$4.80 in the second half to match it.
During the quarter sales and market share came inline with expectations. Truck sales rose 23 percent to $2.3 billion as engine sales grew by 41.1 percent to $955 million.
NAV forecasts that by the second half start-up costs will have decrease substantially,
reducing if not eliminating the 2011 headwind altogether. The company made no change to its sales expectation of $13.6-$14.3 billion, but raised the low end of its manufacturing profit guidance range from $962 million to $1.07 billion to $995 million to $1.07 billion. NAV’s manufacturing cash expectations remained unchanged at $1.2-$1.4 billion.
For more ratings news on Navistar International click here and for the rating history of Navistar International click here.
Shares of Navistar International closed at $58.90 yesterday.
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