UPDATE: DA Davidson Increases PT to $28 on Navistar International Upon SCR Incorporation
In a recently released note, D.A. Davidson reiterated its Neutral rating on Navistar International (NYSE: NAV) and increased its price target from $23 to $28.
In the report, D.A. Davidson stated, "Today Navistar announced it will incorporate Selective Catalytic Reduction (SCR) into its current in-cylinder technology. Management hosted a conference call to announce the move but did not field questions from investors. The company refrained from addressing guidance but acknowledged that development costs would increase. … We are maintaining our NEUTRAL rating on the shares, but increasing our target price from $23 to $28 as there is now some clarity on the engine strategy. The timing of certification and associated costs are still highly uncertain."
Shares of Navistar International were trading at $24.12 at the time of posting, down 15.22 percent from Thursday's market close.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.