Wells Fargo Downgrades Navistar International (NAV) to Market Perform; Cutting Estimates and Price Target

Wells Fargo downgraded Navistar International (NYSE: NAV) from Outperform to Market Perform, price target range lowered from $48-50 to $37-40.

Analyst, Andrew Casey, said, "NAV has many hurdles to overcome, some company specific (EPA emissions certification impact on margin, near-term negative mix shift, and ability to regain truck market share with internally produced engines) and some industry related (current soft Class 5-8 industry
demand and uncertain future military demand). With revised views, we now
believe there are too many challenges facing NAV to achieve FY2012 earnings
guidance (i.e., $4.25-5.25) as well as consensus' FY2012E $4.73.'

Casey doesn't see the shares as 'expensive', but doesn't see any catalysts either. Q2 EPS estimate cut from $1.76 to $0.45, FY12 to $2.58 from $4.50, and FY13 to $4.75 from $7.00.

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 $36.93 yesterday.

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