UPDATE: Goldman Sachs Raises PT to $39 on Navistar International on Cost Reduction Turnaround

Goldman Sachs maintained Navistar International NAV with a Neutral rating and raised the price target from $27.00 to $39.00. Goldman Sachs commented, "We raise our 2014-15 adjusted EBITDA estimates by 24% as NAV earnings revealed significantly more aggressive overhead cost reductions. We had forecast $225 mn of overhead and SG&A cuts on NAV's non-North America truck business. However, our estimate was well below annualized 1Q13 SG&A and R&D reduction of $376 mn on just $73 mn of 4Q12 restructuring, on pace to more than double guidance for $175+ mn in reductions. We stay at Neutral but raise our 12m target to $39, given visibility on an improved cost structure once the product turnaround is complete, balanced by continued product transition execution risk." Navistar International closed at $31.89 on Thursday.