UPDATE: JP Morgan Upgrades Navistar International to Neutral on Balanced Risk/Reward
JP Morgan raises its rating on Navistar International (NYSE: NAV) from Underweight to Neutral with the same $30 price target on shares.
JP Morgan notes, "We are upgrading NAV from Underweight to Neutral, as we believe that after last week's miss and yesterday's Court of Appeals ruling coupled with the number of companies expressing some interest in the name, the upside and downside risks are balanced, in our view. We continue to view NAV cautiously; we note several ongoing risks such as timing of EPA approval and ongoing execution risks. That said, in the worst case scenario, i.e., no EPA approval, we believe that the company would likely have to turn to a partner with engine technology."
NAV closed at $27.15 on Tuesday.
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