UPDATE: Bank of America Downgrades PACCAR to Neutral, Raises PT on Played-Out Thesis

In a report published Monday, Bank of America analyst Ross Gilardi downgraded the rating on PACCAR (NASDAQ: PCAR) from Buy to Neutral, but raised the price target from $53.00 to $55.00.In the report, Gilardi noted, “We reinstated coverage with a Buy in Dec-12. Our thesis was that NA heavy truck orders were forming a bottom, and would improve into spring. This played out, driving 15-20% multiple expansion despite slightly negative EPS revisions. Shares now trade at 17.0x 2013E EPS, and price in a strong 2H recovery, already baked into consensus. Raise PO to $55 (was $53) and downgrade to Neutral. Our 2013 forecast already assumes a 20% sequential EPS pickup in 2H13 on the basis of improving order and production trends. April Class 8 orders came in at a monthly SAAR of 256k units, and the YTD SAAR is 258k units, slightly below our 265k unit forecast for 2013. We see orders holding in the 250-260k range for the next two months, but then see risk of a seasonal dip into the summer months.”PACCAR closed on Friday at $52.54.