UPDATE: Goldman Sachs Raises Target to $47 on PACCAR

Goldman Sachs maintains its Neutral rating on PACCAR (NASDAQ: PCAR) and raises its price target to $47 (previously $43) on recalibrated margin expectations and a more balanced risk-reward ratio.

Goldman Sachs says, "We raise our 2012E/2013E EPS by 8% to $3.10/$3.50 due to an improved outlook for US truck capex, as greater Europe truck production cuts and margin headwinds were already in our estimates. We introduce 2014 EPS of $4.00."

PCAR closed at $44.20 a share yesterday.