UPDATE: DA Davidson Increases PT to $28 on Navistar International Upon SCR Incorporation

In a recently released note, DA Davidson reiterated its Neutral rating on Navistar International

and increased its price target from $23 to $28. DA Davidson said, "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." Navistar International closed at $25.08 on Thursday.