Monday, December 6, 2010

Navistar (NYSE:NAV) Class 8 Orders Exceeding Expectations

While there was an expected boost in Class 8 orders from Navistar International (NYSE:NAV) because of the announcement they were going to increase prices effective January 1, that doesn't account for all the increase in orders for them.

Deutsche Bank (NYSE:DB) said, "Preliminary net Class 8 orders in November were 26,300 units (Source ACT), significantly ahead of expectations in the 20,000 unit range. While orders were likely boosted by announced price increases effective Jan 1st, we view these order levels as very strong and supportive of our North American Class 8 industry sales forecasts of 230,000 units in 2011 and 255,000 units in 2012. We would also note that orders would likely have been stronger had Navistar had full engine availability (NAV is not yet taking orders for its 15L equipped Class 8 truck)."

Navistar closed Friday at $58.65, up by $2.08, or 3.68 percent. Deutsche raised their price target on them from $55 to $64.

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