Navistar International (NAV) PT Raised to $39 at UBS

UBS raised its price target on Navistar International (NYSE: NAV) to $39.00 (from $31.00) while maintaining a Neutral rating following the company's 3Q. NAV reported positive EPS in FQ3 after reporting a loss per share in 21 out of the prior 22 quarters. However, on the negative side, used pricing is still a challenge; and market share is not picking up that quickly.

2018 EBITDA estimates are now $928m, up from $804m, reflecting better truck and parts margins, global operations, and financial services. Analyst Steven Fisher expects NAV to achieve ~75% EBITDA growth in 2018 from improved products, higher 2018 Class 8 volumes, improved execution, cost savings from scale benefits due to the VW alliance, and less risk around warranties and used truck write-downs.

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