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Navistar Out Of The Woods, But A Struggling Macro Environment Isn't Helping

Navistar Out Of The Woods, But A Struggling Macro Environment Isn't Helping
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Navistar International Corp(NYSE: NAV) is mostly out of the woods, but the macro environment won't cooperate. Piper Jaffray's Alexander Potter downgraded the company to Neutral and cut his price target from $14.00 to $11.50.

Navistar has meandered through a tough period that would have driven many lesser companies into bankruptcy. The company, however, remains the highest beta and is the most heavily levered stock in Potter's coverage. Brexit related risks are low, but declining order in the U.S. truck market will "probably lead investors to look for 'safer' options," Potter noted.

Related Link: Truckers Hit, Susquehanna Says Werner Has Flat Tire

The company has made an impressive turnaround. Navistar has fought to regain market share, fix its balance sheet and is determined to implement reforms. The determination paid off when it reported its first profitable quarter since 2012 in spite of a disappointing U.S. truck market. But, with the continued deterioration of the U.S. market, the margin of error is "razor thin," Potter stated.

At time of writing, Navistar was down 2.12 percent on the day, trading at $10.64.

Latest Ratings for NAV

Dec 2017Stifel NicolausUpgradesHoldBuy
Nov 2017SusquehannaInitiates Coverage OnPositive
Oct 2017Wells FargoMaintainsMarket Perform

View More Analyst Ratings for NAV
View the Latest Analyst Ratings

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