Volkswagen (VLKAY) last week announced its intention to prepare its truck business for capital market readiness in an effort to grow the unit into a global leader in transportation, JPMorgan analyst Ann Duignan tells investors in a research note. While the timing of a listing is uncertain, a capital raise by Volkswagen Truck & Bus does increase the likelihood of an "eventual" acquisition of Navistar (NAV), the analyst contends. However, she cautions investors that the timing is uncertain and that Navistar faces a "number of near term risks" including rising input costs. Duignan believes the stock's risk/reward is balanced at the current valuation levels and keeps a Neutral rating on Navistar with a $38 price target.