Jefferies Lowers Price Target on Navistar International (NAV), Slowing Demand Going Forward

Jefferies is reaffirming its Buy rating on shares of Navistar International (NYSE: NAV) while dropping its price target from $95 to $70.

The firm has lowered its estimates to 250 thousand Class 8 trucks in 2011, 300 thousand in 2012, and 320 thousand in 2013 to account for potentially weaker demand and potentially persistent supply chain constraints.

Jefferies is also lowering its military revenue estimate from $1.7 in both 2012 and 2013 to $1 billion. Its estimate reflects $600 million in truck revenue and $425 million in parts. The company has booked several orders in the past few moths which may prove the firms estimates to be conservative.

For 2011, Jefferies is reiterating its FY11 EPS estimate of $6.00, but is lowering its Q3 estimate from $1.45 to $1.35 and is raising its Q4 estimate from $3.24 to $3.38. The firm is also lowering its 2012 and 2013 estimates from $8.30 and $10.15 to $7.00 and $8.50. They also lowered their revenue estimates for 2012 and 2013 by roughly $1 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 $43.47 yesterday.

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