UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on PACCAR
In a report published Friday, J.P. Morgan & Co. reiterated its Neutral rating on PACCAR (NASDAQ: PCAR), and raised its price target from $39.00 to $45.00.
J.P. Morgan noted, “Maintaining our Neutral rating. While the U.S. fleet is as old as it has ever been and the cycle is in its third year of a recovery, we worry that the upside to current estimates may be limited due to the lack of a clear economic recovery, as well as other issues, including 1) the shortage of drivers, which is limiting fleet expansion in the U.S.; 2) reduced industry order trends, as fleets remain less willing to purchase trucks on credit; and 3) macro headwinds in Europe, which accounts for approximately one-third of revenues. That said, PCAR could see some margin benefit on mix shifts to new products, after near-term bumpiness on reduced production, and a higher proportion of engines built in-house. Near term, PCAR has reduced its production plans, and our forecasts for 2013 in the NA and Europe truck markets are flattish at best. The addition of PCAR's Brazilian operation in mid-2013 supports longer-term growth, in our view, but could likely cause near-term inefficiencies. Overall, we remain Neutral on PCAR given these offsetting trends.”
PACCAR closed on Thursday at $42.78.
Latest Ratings for PCAR
|Sep 2016||CLSA||Initiates Coverage on||Outperform|
|Sep 2016||Deutsche Bank||Initiates Coverage on||Hold|
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