Barclays Maintains an 'Equalweight' on Navistar Int'l (NAV); FY4Q11 Preview: Quarter and Long-Term Outlook Steady but Questions Remain

Barclays maintains an 'Equalweight' on Navistar International (NYSE: NAV) price target of $44.00.

Barclays analyst says, "While we continue to favor Machinery companies with more construction/mining-related end market exposure, we still see some investment positives for NAV that could drive revenue/earnings in FY4Q11 and in FY2012: 1) We anticipate solid truck builds and strong military shipments in FY4Q to drive earnings. We think that quarterly earnings should be positively impacted by solid builds (according to ACT Research, NAV's NAFTA Class 8 builds totaled ~17k in FY4Q vs. an average of ~12k in its first three quarters); 2) We continue to expect slow improvement in the NAFTA Class 8 market in 2012, projecting a ~20% increase in builds; and 3) We believe that NAV is poised to benefit long-term from growing aftermarket opportunities. We think increased penetration of NAV equipment (i.e., NAV's 13L) in its own vehicles as well as an aging Class 8 fleet could drive solid aftermarket growth in the coming years."

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 $37.52 yesterday.

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