Sterne Agee: Navistar in Position to Represent 20% of Industry Sales

In a research report published today by Sterne Agee, the car industry's move towards Natural Gas and Hybrid engine technology has put Navistar International Corp. NAV in position to represent 20% of sales within 2-3 years. According to Sterne Agee, “NAV currently offers a joint ISL-G product with Cummins Westport (WPRT, $46.33, Not Rated) at the 11.9L level, and its own DT engine at lower displacement, but will also be rolling out a series of engines in the industrial work platform and 13L and 15L markets by mid next year. Based on our conversations with fleets, many are testing these engines now, with the idea of making purchasing decisions late this year or early 2013.” Sterne Agee maintains its Buy rating and $65 PT on Navistar, which closed yesterday at $41.50.