UPDATE: DA Davidson Downgrades Navistar to Neutral on Outlook

DA Davidson reduces its rating on Navistar NAV from Buy to Neutral and reduces its price target from $50 to $23. DA Davidson notes, "We are reducing our rating on Navistar shares from Buy to NEUTRAL and our target price from $50 to $23. Our new target price is based on ~5x our FY13 EPS estimate. There is tremendous leverage in the Navistar model (10bp of margin improvement translates to ~$0.15 in EPS), however the recent volatility of cautious on the shares." NAV closed at $24.11 on Thursday.