Jefferies Cuts Price Target & Estimates on PACCAR (PCAR) Due to Updated Industry Model

Jefferies is maintaining its Buy rating on shares of PACCAR (NASDAQ: PCAR), but is cutting its price target from $65 to $55.

Following an industry check, the firm has lowered its forecast to 250 thousand Class 8 trucks in 2011, 300 thousand in 2012, and 320 thousand in 2013. The new estimates are to account for weaker demand although none is present at this time.

The firm cut its 2011 EPS estimate from $2.75 to $2.68, its 2012 estimate from $3.80 to $3.50, and its 2013 estimate from $4.60 to $4.30.

Shares of PCAR have historically traded between 70-140 percent EV/Sales through a cycle, and closed on August 4 at about 75 percent. Jefferies comments, "These cycle low valuations suggest the market is expecting 2011 to be a peak year in the truck cycle, which we view as highly unlikely."

For more ratings news on PACCAR click here and for the rating history of PACCAR click here.

Shares of PACCAR closed at $38.99 yesterday.

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