Recent Analysts’ Ratings Updates for Navistar International Corp (NAV)
Several brokerages have updated their recommendations and price targets on shares of Navistar International Corp (NYSE: NAV) in the last few weeks:
- 9/12/2016 – Navistar International Corp had its price target raised by analysts at Royal Bank Of Canada from $13.00 to $18.00. They now have a “sector perform” rating on the stock.
- 9/12/2016 – Navistar International Corp was upgraded by analysts at Zacks Investment Research from a “strong sell” rating to a “hold” rating. According to Zacks, “Navistar reported a year-over-year decline in adjusted loss in third-quarter fiscal 2016. However, the results missed the Zacks Consensus Estimate of a profit. Revenues also fell year over year and lagged the Zacks Consensus Estimate. The decline resulted from lower chargeouts in the company's core markets owing to sluggish industry conditions. Navistar is expected to reap significant benefits from its strategic alliance with Volkswagen, launch of new products and cost-saving initiatives. However, the prevailing economic uncertainties in Brazil are negatively impacting its results. The weak delivery and revenues guidance for the year also pose concerns.”
- 9/12/2016 – Navistar International Corp had its “sector perform” rating reaffirmed by analysts at RBC Capital Markets. They now have a $18.00 price target on the stock, up previously from $13.00.
- 9/9/2016 – Navistar International Corp was upgraded by analysts at Goldman Sachs Group Inc. from a “sell” rating to a “neutral” rating. They now have a $20.00 price target on the stock, up previously from $18.00. They wrote, “meaningfully reduced.”JustificationVolkswagen’s investment improves the liquidity profile of Navistar, Goldman Sachs’ said, which provides “an incremental $256 million of equity capital compared to our estimate of future used truck trade-in losses of $250 million–$300 million.” This is based on losses of $20,000–25,000 per vehicle in the existing fleet, which has resulted in “the bonds trading up to par.”As such, Goldman Sachs raised its mid-cycle margin estimate by 250 bps to 9 percent, which would still lag peer PACCAR Inc (NASDAQ: PCAR)’s 11 percent margins due to PACCAR’s structurally higher capital velocity.Related Link: Volkswagen’s $256 Million Investment Adds $600 Million To Navistar’s Market CapOn The Sidelines”Our new mid-cycle estimates of $3.72 in EPS and $1.16 billion in EBITDA are based on a 9 percent EBIT margin, which includes 250 bps of benefit from reduced material sourcing costs. If Navistar’s turnaround proves successful, we estimate margins of 9 percent,” analyst Jerry Revich wrote in a note.However, the brokerage remains sidelined, citing market share risk.”While we are positive on management’s actions to improve the product portfolio, continued deterioration in used equipment values for Navistar trucks manufactured under the prior management team creates risk of lower normalized market share, in our view,” Revich highlighted.The Bottom LineDespite the challenging near-term U.S. truck capex outlook, the analyst hopes that electronic logging standards set to be implemented in 2018 would drive a 4 percent reduction in available supply and freight price.As such, Revich stated, “[T]he near-term risk-reward is balanced, with upside from an operational turnaround offset by the risk of rising legacy liabilities and market share loss.”
- 9/9/2016 – Navistar International Corp had its price target raised by analysts at Robert W. Baird from $12.00 to $20.00. They now have a “neutral” rating on the stock.
- 9/9/2016 – Navistar International Corp had its “sell” rating reaffirmed by analysts at Barclays PLC. They now have a $16.00 price target on the stock.
- 9/9/2016 – Navistar International Corp had its price target raised by analysts at Deutsche Bank AG from $14.00 to $21.00.
- 9/7/2016 – Navistar International Corp had its “sell” rating reaffirmed by analysts at Stifel Nicolaus. They now have a $14.00 price target on the stock, up previously from $10.00.
- 9/7/2016 – Navistar International Corp had its price target raised by analysts at Seaport Global Securities from $13.00 to $19.00. They now have a “neutral” rating on the stock.
- 9/6/2016 – Navistar International Corp had its “hold” rating reaffirmed by analysts at Wells Fargo & Co..
- 9/6/2016 – Navistar International Corp was downgraded by analysts at Macquarie from a “neutral” rating to an “underperform” rating. They now have a $15.00 price target on the stock.
- 9/6/2016 – Navistar International Corp is now covered by analysts at Deutsche Bank AG. They set a “hold” rating and a $14.00 price target on the stock.
Navistar International Corp (NYSE:NAV) traded up 8.00% during midday trading on Wednesday, hitting $22.41. The company had a trading volume of 2,362,028 shares. The company’s 50 day moving average is $15.37 and its 200 day moving average is $13.13. Navistar International Corp has a 12-month low of $5.78 and a 12-month high of $23.45. The stock’s market cap is $1.83 billion.
Navistar International Corp (NYSE:NAV) last posted its quarterly earnings results on Thursday, September 8th. The company reported ($0.42) EPS for the quarter, missing the Zacks’ consensus estimate of $0.15 by $0.57. The company earned $2.10 billion during the quarter, compared to analyst estimates of $2.19 billion. The business’s quarterly revenue was down 17.8% on a year-over-year basis. During the same period last year, the business earned ($0.37) EPS. On average, equities analysts anticipate that Navistar International Corp will post ($0.45) EPS for the current fiscal year.
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In related news, Director Michael N. Hammes sold 4,000 shares of Navistar International Corp stock in a transaction dated Monday, September 12th. The stock was sold at an average price of $18.71, for a total value of $74,840.00. Following the completion of the transaction, the director now directly owns 5,261 shares in the company, valued at $98,433.31. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 21.60% of the stock is owned by corporate insiders.
Navistar International Corporation (NIC) is a holding company, whose principal operating subsidiaries are Navistar, Inc and Navistar Financial Corporation (NFC). The Company is a manufacturer of International brand commercial and military trucks, MaxxForce brand diesel engines, IC Bus (IC) brand school and commercial buses, as well as a provider of service parts for trucks and diesel engines.
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