Goldman Sachs Lowers PT on PACCAR to $60 (PCAR)

Goldman Sachs is out with its report today on PACCAR

, lowering its price target from $65 to $60. In a note to clients, Goldman Sachs writes, "PCAR was down 8% yesterday (S&P +2%) as weaker 4Q margins and outlook prompted concerns over raw material inflation, pricing power, and cost control. We reduce our 2012E EPS by 8% but maintain our Neutral rating as we are constructive on the global truck cycle and believe tight used truck inventories will ultimately provide truck manufacturers with pricing power to cover inflation. We lower our 12-month target to $60 from $65 prior based on 9.2x 2012E EV/EBITDA (unchanged). PCAR is trading at 11.2x/ 7.7x 2011-12 EV/EBITDA, premiums of 21%/ 6% to Machinery vs. a modest premium historically." At the time of posting, shares of PCAR were trading at $52.27, up 0.62% from Tuesday's close.