Prudential Upgrades Navistar to 'Buy'
Prudential upgraded Navistar International (NAV ) to buy from hold.
Analyst Andrew Casey says he's seeing improvement and signs of a turnaround in the North American truck market. Casey narrowed the $0.37 fiscal 2001 (Oct.) loss estimate to a $0.13 loss, and raised the $1.45 fiscal 2002 EPS estimate to $1.50.
Compared to other truck manufacturers, Navistar is primarily North American exposed, and at this price level it should be a better play than other manufacturers. He also sees sustainable growth from diesel engines as benefitting Navistar. He raised his $38 target to $40.