UPDATE: Piper Jaffray Starts Navistar International (NAV) at Overweight

(Updated - July 17, 2014 6:46 AM EDT)

Piper Jaffray initiated coverage on Navistar International (NYSE: NAV) with an Overweight rating and a price target of $46.00.

Analyst Alexander Potter states, "A faulty engine strategy almost drove NAV out of the industry, but by pairing with Cummins and adopting a more widely accepted emissions technology, we think NAV is on the road to recovery. Q2 results offered evidence that the company's efforts are bearing fruit, with positive EBITDA margins (+3%) and rising market share. We have used a detailed DCF model to project these and other metrics out to 2040, and believe that NAV is an attractive buy based on the following assumptions: 1) the company will sustainably achieve 10%+ EBITDA margin by 2018; 2) the company will regain most - but not all - of its lost market share in the coming years."

For an analyst ratings summary and ratings history on Navistar International click here. For more ratings news on Navistar International click here.

Shares of Navistar International closed at $37.26 yesterday.

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