UPDATE: Goldman Sachs Reiterates Neutral Rating, Lowers PT for Navistar International
In a company update published earlier today, the Goldman Sachs Group, Inc. reiterated its Neutral rating for Navistar International Corporation (NYSE: NAV), but lowered its price target from $33.00 to $25.00.
Goldman Sachs said they made their decision “based on a 65% weighting to our base case scenario of $20 – 7X 2013 EV/EBITDA (unchanged) – and a 35% weighting to our $35 value estimate (also 7X 2013 EV/EBITDA) that assumes US Engine segment losses are eliminated via a sourcing agreement or another strategic action. NAV is trading at 7.3x 2013 EV/EBITDA, a 28% premium to Machinery.”
Navistar International Corporation closed yesterday at $24.11.
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