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Navistar +10% as Baird upgrades, sees transformed company

Published 06/05/2017, 11:33 AM
© Reuters.  Navistar +10% as Baird upgrades, sees transformed company
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  • Navistar (NAV +10.3%) shoots higher after Baird upgrades shares to Outperform from Neutral with a $33 price target, up from $32, believing NAV is nearing the end of a half-decade transformation after a near-fatal decision to internally produce heavy-duty engines.
  • Baird also believes a transformed NAV is on the verge of driving higher volume, profit margins and earnings that could take the stock above $50 during the next several years.
  • The firm cites key catalysts as volumes and revenues, profit margins and cash flow, while risks include market share, financial leverage and timing, all of which are backstopped by Volkswagen (DE:VOWG_p)'s 17% position.
  • Now read: Volvo AB (VOLAF) Investor Presentation - Slideshow


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