UPDATE: DA Davidson Downgrades Navistar to Neutral on Outlook
DA Davidson reduces its rating on Navistar (NYSE: NAV) from Buy to Neutral and reduces its price target from $50 to $23.
DA Davidson notes, "We are reducing our rating on Navistar shares from Buy to NEUTRAL and our target price from $50 to $23. Our new target price is based on ~5x our FY13 EPS estimate. There is tremendous leverage in the Navistar model (10bp of margin improvement translates to ~$0.15 in EPS), however the recent volatility of cautious on the shares."
NAV closed at $24.11 on Thursday.
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