This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ahead Of The Bell: Navistar Protest

HARTFORD, Conn. (AP) ¿ Navistar International Corp.'s protest over a contract evaluation process suggests that it is unlikely the company will win a $3 billion military pact, an analyst said Friday as he downgraded the stock.

Navistar Defense LLC, a part of Navistar International Corp. of Warrenville, Ill., said Thursday it is "in discussions" with the government over a technicality in the evaluation of the Mine Resistant Ambush Protected All Terrain Vehicle program. The company was not specific about the issues being discussed.

Analyst Jerry Revich of Goldman Sachs downgraded the Warrenville, Ill., company to "Neutral" from "Buy" and cut his profit estimate for this year to $2.40 per share from $4.50 per share. For 2010, Revich slashed his estimate to $2.25 per share from $6.60 per share and for 2011, he cut his estimate to $5.25 per share from $7.60.

Revich said in a note to investors that Navistar's protest suggests it is unlikely to win the contract because of the "urgent nature" of the program. It will more likely win a share of the work, he said.

"We believe that Navistar offers the US military a compelling value proposition driven by its strong manufacturing capability and low cost structure, although the M-ATV dispute suggests its engineering performance on this contract didn't meet the military's expectations," Revich said.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG
FLIR $31.64 0.00%
FRPT $19.81 0.00%
GD $140.87 0.00%
HRS $79.32 0.00%
NAV $27.98 0.00%

Markets

DOW 18,285.74 +0.34 0.00%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs