UPDATE: Piper Jaffray Initiates PACCAR at Overweight on Truck Trends

Piper Jaffray initiated coverage on PACCAR PCAR with an Overweight rating and a $48.50 price target. Piper Jaffray said, "While not without its concerns, we believe PCAR's largest segment - the North American truck market - is in better shape than most other markets within our coverage (such as the Chinese truck and machinery markets or markets that rely on global commodity prices). When the truck replacement cycle regains steam in North America, PCAR should be the primary beneficiary - especially considering the company's efficient operations, best-in-class brands, and recent missteps by competitor Navistar. PCAR trades at ~13x 2012 EPS; we believe the stock will trade up to 14x 2013 EPS once investors regain confidence in out-year estimates." PACCAR closed at $42.39 on Monday.