UPDATE: Morgan Stanley Downgrades Navistar International Corp. to Underweight, Lowers PT on Head-On Collision Between Consensus and Reality

In a report published Wednesday, Morgan Stanley analyst Nicole DeBlase downgraded the rating on

from Equal-Weight to Underweight, and lowered the price target from $26.00 to $20.00. In the report, Morgan Stanley noted, "Based on our detailed scenario analyses, we conclude that 2016-17e consensus bakes in bullish market share regain and aggressive incremental cost cuts; we are uncomfortable with this given a lack of market share traction and execution issues to date. As such, we cut our PT to $20; downgrade to UW." Navistar International Corp. closed on Tuesday at $30.54.