(NAV) Navistar International – Bear of the Day

Navistar International (NAV) is one of the largest truck producers after Daimler and PACCAR. But we are worried about its mounting research and development expenses on the back of stricter regulations by the government, from whom it generates a significant portion of revenues.

Further it faces significant supplier risk, owing to higher dependence on only a few suppliers of components. In the most recent quarter, the company reported a loss of $1.99 per share in sharp contrast to a profit of $1.30 per share in the prior-year quarter and the Zacks Consensus Estimate of $0.67 per share.

As such, we have downgraded the recommendation on the shares of the company from Neutral to Underperform and set a target price of $26.00. This amounts to 50.0X our 2012 EPS estimate.

NAVISTAR INTL (NAV): Free Stock Analysis Report

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | Consumer Goods | Trucks & Other Vehicles

RSS feeds: NAV | Navistar International Corporation | Consumer Goods | Trucks & Other Vehicles |

Other Posts by | RSS Feed for this author